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HomeMy WebLinkAbout2008_10_14 CC PKTCity Council Packet October 14, 2008 1 Brookings City Council Tuesday, October 14, 2008 City Hall Council Chambers 311 Third Avenue 5:00 p.m. ~~ Work Session 6:00 p.m. ~~ Council Meeting Mission Statement The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. SD Long-Term Care Partnership Program – Public Education Sessions. 2. Department of Transportation land discussion. 3. Economic Development land discussion 4. Preliminary discussion to schedule 2009 Goal Setting Retreat. 5. 6:00 p.m. Meeting Review. 6. Council Invites & Obligations 7. City Council member introduction of topics for future discussion. * *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to approve minutes. C. Action on Resolution No. 85-08, revising fees for various city services. D. Action on Resolution No. 86-08, a Resolution setting forth a schedule of proposed Fines, Fees and Procedures pertaining to the keeping and control of animals in the City of Brookings, South Dakota. E. Action on Resolution No. 87-08, setting the Unit Financial Charge for 2009 Storm Drainage Fees. F. Action on Resolution No. 88-08, authorizing the City Manager to sign a Wine Operating Agreement renewal for Old Sanctuary. G. Action on bids for snow removal equipment for Street Department. Action: Motion to approve, request public comment, roll call * Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. City Council Packet October 14, 2008 2 Presentations/Reports/Special Requests: 5. Open Forum. 6. SDSU Report. 7. Presentation of Bike Route Proposal by SDSU Student Senate. Ordinances – 1st Readings **: ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. Public Hearings, Second Readings, Ordinances: 8. Public hearing and action on Resolution No. 89-08, vacating 4th Street between 5th Avenue and 6th Avenue. Action: Open & Close Public Hearing, Motion to approve, Roll Call 9. Public hearing and action on Resolution No. 90-08, a resolution of intent to lease real property to a private entity. Action: Open & Close Public Hearing, Motion to approve, Roll Call 10. Action authorizing the City Manager to enter into a lease agreement with Mike and Sarah Wilson for the rental of property at 2150 Derdall Drive. Action: Motion to approve, request public comment, roll call 11. Ordinance No. 38-08, an Ordinance amending Section 6-4 of the Revised Ordinances of the City of Brookings and pertaining to the sale of Alcoholic Beverages on Sunday in the City of Brookings. Action: Motion to approve, request public comment, roll call 12. Ordinance No. 39-08, An Ordinance establishing a conditional use to establish an apartment on the W ½ of the W ½ of Lots 1–4, excluding Lot H-1, Block 11, Skinners Second Addition (1016 6th Street). Action: Open & Close Public Hearing, Motion to approve, Roll Call 13. Ordinance No. 40-08, An Ordinance rezoning Lot 3, Nelson Eighth Addition from an Agricultural A District to a Residence R-1B District (15th Street South and Medary Avenue area). Action: Open & Close Public Hearing, Motion to approve, Roll Call Alcohol Licenses: 14. Public hearing and action on Resolution No. 91-08, approving an on-off sale wine license for the Brookings Hy-Vee store and authorizing the City Manager to enter into an operating agreement. Action: Open & Close Public Hearing, Motion to approve, Roll Call Other Business: 15. Action on Resolution No. 92-08, a Resolution authorizing Change Order (CCO #6) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, request public comment, roll call City Council Packet October 14, 2008 3 16. Action to approve the DEVELOPMENT AGREEMENT for Tax Increment Plan for Tax Increment District Number Four (TID #4). Action: Motion to approve, request public comment, roll call 17. Adjourn. Brookings City Council Scott Munsterman, Mayor Tim Reed, Deputy Mayor Mike Bartley, Council Member Tom Bezdichek, Council Member Ryan Brunner, Council Member Mike McClemans, Council Member Julie Whaley, Council Member Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm , Friday @ 9 pm and Saturday @ 1 pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City Council Packet October 14, 2008 4 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. SD Long-Term Care Partnership Program – Public Education Sessions. On October 23, 2008 the South Dakota Long-Term Care Partnership Program will be holding free public education sessions in Brookings to answer questions about long-term care, and to help explain how long-term care works, what Medicaid and Medicare pay for, how to plan ahead and what to look for in a long-term care insurance policy. The Partnership Program is hosting public education sessions throughout the state this fall, and this will be the only stop in Brookings until next spring. Sessions will be held on Thursday, October 23 at 12 noon, 3:00 p.m. and 5:30 p.m. in the Cooper Room of the Brookings Public Library. Each session lasts approximately one hour. For more information, please contact: Tarah Jahnig Communications Director South Dakota Department of Social Services 605-773-3165 tarah.jahnig@state.sd.us City Council Packet October 14, 2008 5 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. Department of Transportation land discussion. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Discussion about DOT property for future development We need to make a decision by the end of the year whether or not we wish to exercise our option for the purchase of the DOT property on the northeast corner of Highway 14 and I-29. It has been suggested we could contact various parties who may have a potential interest in the development of this site, and ascertain their level of interest with a Request for Proposal (RFP). Responses, or lack thereof, would perhaps give us an idea as to which policy direction we should pursue relative to exercising our option. Attached is a draft RFP for discussion purposes that may be a tool to be used in an attempt to determine a level of interest. City Council Packet October 14, 2008 6 Request for Proposal Commercial Development Opportunity I-29/Highway 14 Re-Development Project City of Brookings, SD The City of Brookings, South Dakota currently holds a first-right-of-refusal to purchase a tract of land currently owned by the State of South Dakota, Dept. of Transportation, for purposes of private commercial re-development. The City must exercise this option by December 31, 2008 or it reverts to the State of South Dakota. In the event this occurs, it is unknown what the State intends to do with the property. The City of Brookings secured the first-right-of-refusal with the intent of working in concert with private developers, realtors, investors, either with a single party or with a combination of multiple parties, to undertake a comprehensive re-development of this parcel. Proposal Before the City decides to exercise this option, it wishes to assess the level of interest from interested persons or parties in participating in a comprehensive re-development of this site. Re-development plans envisioned by the City include but are not limited to mixed use residential, hotel/motel, large/small scale retail, service businesses, office space, entertainment, dining, and convenience stores. Persons interested in undertaking, exclusively, or with a series of partners, a comprehensive development project, are invited to complete the attached sheet and follow the submittal instructions on the bottom of that sheet. The information submitted is not legally-binding, but will be used by the City of Brookings to assess the level of interest in proceeding with this project and the direction such a project may take. The City may contact you for further follow-up. Site The site is a 26-acre (plus/minus) parcel on the northeast corner of Interstate 29 and Highway 14 in Brookings. It is bound by interstate right-of-way on the west; Highway 14 (6th Street) on the south; undeveloped city-owned property on the north; and an existing small research center and private undeveloped parcel serviced by 32nd Avenue on the east. (See attached map) Adjacent development includes the city-owned Larson Ice Center and Swiftel Event Center to the east and substantial commercial and industrial development to the south across Highway 14. The parcel is zoned Planned Unit Development which allows the maximum flexibility for permitted use. The parcel is part of Tax Increment District #1. No TIF project plan has been approved so certain site improvements may be eligible for tax increment finance assistance. Existing structures on the site include the SDDOT maintenance shop and some out-buildings. City-owned property to the north may be considered part of this overall development plan with details subject to negotiation. City Council Packet October 14, 2008 7 I-29/Hwy. 14 Re-development project Name: _________________________________________ Company Name: _________________________________________ Address: _________________________________________ _________________________________________ Phone Number: _________________________________________ Cell Phone Number: _________________________________________ Partnership interest, check one: Exclusive ___ Partner with others___ Brief description of the role you prefer to play in the re-development interest in the property: (i.e. investor, realtor, property management, building contractor, infrastructure contractor, business owner etc.) ________________________________________________________________ _______________________________________________________________ Brief description of type of development you would be interested in pursuing in this property. How much of the property are you interested in? (One acre minimum to all 26 acres) How much would you be willing to pay for this property? (Respond either by acre or square foot amount)_______________________________________________________ Send this sheet to: City of Brookings Office of the City Manager City Manager Jeff Weldon 311 Third Avenue; P.O. Box 270 Brookings, SD 57006 Deadline: November 19, 2008 City Council Packet October 14, 2008 8 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Economic Development land discussion. This agenda item is a continuation of the discussion regarding the City’s economic development land transfer value process. Al Heuton, BEDC Director, will be at the meeting to respond to questions. Enclosures: o Res. 79-04 (Market Value for Industrial Property) o “Land Request Process” from Brookings Economic Development Corporation City Council Packet October 14, 2008 9 RESOLUTION NO. 79-04 CITY OF BROOKINGS, STATE OF SOUTH DAKOKTA WHEREAS, the City of Brookings is the owner of certain tracts of real estate in Telkamp Industrial Addition and in Weise Business Park that are available to be sold for private industrial or commercial development; and WHEREAS, it is in the best interest of the City of Brookings and that of prospective developers and others that the estimated market value of said property be determined from time to time to aid in considering the sale price thereof. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota as follows: That the estimated market value of properties located in Telkamp Industrial Addition and Weise Business Park, all in the City of Brookings, South Dakota be determined by formal appraisal or informal market evaluation periodically and prior to the actual sale of any of such property. That this resolution shall supersede any and all prior resolutions and ordinances in conflict with or inconsistent with this resolution. Passed and adopted by the City Council of the City of Brookings, South Dakota this 14th day of December 2004. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: ______________________________ Shari Thornes, Brookings City Clerk City Council Packet October 14, 2008 10 Land Request Process (From Al Heuton, BEDC – 06/05/08) Requests to purchase city owned property in Brookings industrial and commercial parks are processed through Brookings Economic Development Corporation (BEDC). The City must either transfer land through BEDC or conduct a sealed bid process open and advertised to the general public. The request process generally follows the steps described below: 1. Business approaches BEDC with interest in acquiring land. 2. BEDC will assist the industry/business with collection of information required to prepare a land request proposal and to complete an incentive scorecard, if a land incentive is requested. o The request proposal outlines the case for sale of land to the business. o The scorecard provides information that allows BEDC to complete a benefit/cost analysis of the projects economic impact on the community. o The benefit/cost analysis and the request proposal assist the city council in determining the value of land incentive, if any, that may be provided. 3. The completed land request proposal is reviewed with the business to ensure no proprietary information is presented in a public forum. Company names and/or details that might allow the company to be recognized will be removed from the presentation to the city council upon request of the business. 4. When the request proposal is completed BEDC will contact the city clerk and city manager to place the request on the next available city council agenda. 5. The land request is a request from BEDC, not the business. Therefore, BEDC will present the request to the city council. The business is welcome to participate in the request presentation if desired. 6. Upon approval of the request, or amended request, the city attorney will prepare the necessary land closing and transfer documents and conduct the sale. BEDC will prepare a Memorandum of Understanding between BEDC and the business regarding details of the sale. (BEDC generally requires the business to cover applicable closing costs. If desired by the business, the business may purchase title insurance at the businesses expense. 7. After approval of the land transfer resolution from the City to BEDC there is a 20-day referendum waiting period that must be observed before the land closing can occur. City Council Packet October 14, 2008 11 Land Request – General Outline Following is a general narrative outline BEDC will use to make the land request to the City Council. Project Request: Brief summary of the request: location and number of acres of land, purpose of the project and requested land price. Project History: Summary of company history in the community – facility type, headquarters location, product/service type, years in community, current employment, wage summary, occupations, employee place of residence, etc. Proposed Project: General description of business/industry growth projection, number of jobs to be created/retained, timetable, capital investment, etc. Economic Impact: A chart similar to the following is used to provide a general benefit/cost analysis. Information requested to complete the incentive scorecard is used to determine the economic impact. Economic Impact Summary Benefit/Cost Description Benefit to Community Cost to Community Land – Initial Land Offering $61,000.00 Land – Current request $16,650 Road Improvement $102,000 Job Creation 250 total employees/ approx. 200 FTE’s Average Wage $10-$13/hour range Estimated Annual Payroll $3,750,000 Estimated Payroll to Brookings County residents $2,550,000 Net Annual Benefit $2,620,260 $179,650 Benefit at 5 years $13,101,260 $179,650 City Council Packet October 14, 2008 12 Impact Assessment Possible Points Score Total FTE Count (est. total payroll ____________) Under 10 2 10 to 20 4 21 to 50 8 Over 50 10 Non-Management Avg. Pay Rate (FTE _____ est. payroll____________) Under $8 2 $8 to $10 4 $9 to $11 6 $11 to $13 8 Over $13 10 25k to 50k 4 51k to 75k 8 Over 75k 10 High 1 Medium 5 Low 10 Benefit Package Health Care Retirement Volatile 0 Moderate 5 Stable 10 Start-up 5 Satellite 5 Relocation (incl. HQ) 10 Existing Industry Retention or Expansion 10 <200k 2 200k-500k 4 500k-1M 6 1M – 2M 8 Over 2M 10 Value of Construction Phase & Community Impact 0 to 10 Sales Tax Generation 0 to 10 SDSU Alliance/Graduate Retention 0 to 10 Potential for Spin-off/Supplier Firms 0 to 10 Diversifies Economic Base 0 to 10 Total Score 130 Incentive Scorecard Firm: Employment Impact Competition for Existing Labor Pool Management Avg. Annual Salary (FTE _____ est. payroll ___________) Industry/Firm Stability Nature of Firm’s Brookings Location Real Estate Tax Generation (assessed value) 0 to 10 Industry/Firm Characteristics Community Impact City Council Packet October 14, 2008 13 Information needed to complete the scorecard includes: • Total number of full-time employee equivalents (FTE’s) and total payroll. • Number of Non-management FTE’s and average wage. • Number of Management FTE’s and average wage. • Description of the benefit package provide – health care, retirement, other. • Value of new construction. • Value of taxable equipment to be purchased. • Use of SDSU students or graduates in the labor force. • Supply or value-added relationships with other community business or industry. It would also be helpful to have some information depicting the company’s involvement in the community. As previously mentioned, BEDC staff are available to assist the business with preparation of this information and will prepare the narrative for presentation to the city council. Please contact BEDC with any questions or assistance needs. Al Heuton, Executive Director Brookings Economic Development Corporation P.O. Box 431 Brookings, SD 57006 Phone: 605-697-8103 FAX: 605-697-8109 e-mail: bedc@brookings.net City Council Packet October 14, 2008 14 Exhibit “A” ________________________________________ Property Description: Grantee agrees to utilize the above-described property solely for the purposes of development of a manufacturing facility for _______. In the event Grantee does not develop the property within three (3) years of the recording date of this Warranty Deed, Grantee, upon request of the Brookings Economic Development Corporation, shall re-convey said property free from liens and encumbrances to the Brookings Economic Development Corporation for consideration not to exceed the original purchase price of the above described property. Should Grantee desire to subdivide and sell all or part of any undeveloped portions of the property at a later date, Grantee shall notify Brookings Economic Development Corporation and because the undeveloped land originally was conveyed to _______ at a reduced price, Grantee agrees to reimburse the Brookings Economic Development Corporation for the value of the land, based on its undeveloped condition, in the amount of $______ per acre, with the price to be pro-rated based upon the actual number of acres sold. Should Grantee desire to sell the developed property within ten (10) years of the recording date, Grantee shall notify Brookings Economic Development Corporation and because the developed land originally was conveyed to _______ at a reduced price, Grantee agrees to reimburse the Brookings Economic Development Corporation for the value of the land as follows: a. $_______ per acre if sold during years one (1) to five (5) following the date of closing. b. $______ per acre if sold during year six (6) following the date of closing. c. $______ per acre if sold during year seven (7) following the date of closing. d. $______ per acre if sold during year eight (8) following the date of closing. e. $______ per acre if sold during year nine (9) following the date of closing. f. $______ per acre of sold during year ten (10) following the date of closing. Grantor agrees to permit Grantee’s lender to have priority over the Covenants and Restrictions contained herein and, accordingly, Grantor has agreed to execute a subordination agreement, however the Grantor and Grantee agree the foregoing Covenants and Restrictions shall run with the land and be binding on Grantee’s successors and assigns. City Council Packet October 14, 2008 15 Land Terms/Development Cost/Incentives/Buyer Performance Land Purchase Cost Telkamp & Weise = $2,500/acre Svennes = $18,000/acre Land Development Cost For a 41’ wide street (32nd Ave) $200/foot (today’s cost) for street including storm sewer, paving, striping $30/foot – water main $30/foot – sewer main City Land Sale Policy $1/SF – negotiable Note: City land investment cost varies as does infrastructure investment. For example, land costs vary from $2,500 per acre to $18,000 acre. On some parcels the City paid to install infrastructure (which should be built into land sale) and on some parcels BMU installed the infrastructure in which case they charge a foot frontage or area fee. Storm sewer, if installed, is a city cost. Roads are generally a city cost, but in some cases (portions of Prince Drive and 32nd Avenue) grants have been obtained to pay for up to 80% of the road infrastructure cost. Land Incentive Note: In two cases over the last few years communities competing for relocation or expansion projects of Brookings industries have offered free land and utilities to the door. Buyer Performance: All projects are evaluated based upon a capital investment and job creation economic impact versus city investment in property. The information collected during the application process is provided by the business. Past policy has not required verification of capital investment cost or job creation. This could be done with penalties for non-performance attached if desired. (However, please keep in mind that a general policy may place us in a difficult competitive position for projects.) City Council Packet October 14, 2008 16 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. Preliminary discussion to schedule 2009 Goal Setting Retreat. This will be a brief discussion regarding date and format of the City Council’s 2009 goal setting retreat. Staff recommendations a January or February date. City Council Packet October 14, 2008 17 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. 6:00 p.m. Meeting Review. 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to approve minutes. C. Action on Resolution No. 85-08, revising fees for various city services. D. Action on Resolution No. 86-08, a Resolution setting forth a schedule of proposed Fines, Fees and Procedures pertaining to the keeping and control of animals in the City of Brookings, South Dakota. E. Action on Resolution No. 87-08, setting the Unit Financial Charge for 2009 Storm Drainage Fees. F. Action on Resolution No. 88-08, authorizing the City Manager to sign a Wine Operating Agreement renewal for Old Sanctuary. G. Action on bids for snow removal equipment for Street Department. Action: Motion to approve, request public comment, roll call Presentations/Reports/Special Requests: 5. Open Forum. 6. SDSU Report. 7. Presentation of Bike Route Proposal by SDSU Student Senate. Public Hearings, Second Readings, Ordinances: 8. Public hearing and action on Resolution No. 89-08, vacating 4th Street between 5th Avenue and 6th Avenue. Action: Open & Close Public Hearing, Motion to approve, Roll Call 9. Public hearing and action on Resolution No. 90-08, a resolution of intent to lease real property to a private entity. Action: Open & Close Public Hearing, Motion to approve, Roll Call 10. Action authorizing the City Manager to enter into a lease agreement with Mike and Sarah Wilson for the rental of property at 2150 Derdall Drive. Action: Motion to approve, request public comment, roll call 11. Ordinance No. 38-08, an Ordinance amending Section 6-4 of the Revised Ordinances of the City of Brookings and pertaining to the sale of Alcoholic Beverages on Sunday in the City of Brookings. Action: Motion to approve, request public comment, roll call 12. Ordinance No. 39-08, An Ordinance establishing a conditional use to establish an apartment on the W ½ of the W ½ of Lots 1–4, excluding Lot H-1, Block 11, Skinners Second Addition (1016 6th Street). Action: Open & Close Public Hearing, Motion to approve, Roll Call 13. Ordinance No. 40-08, An Ordinance rezoning Lot 3, Nelson Eighth Addition from an Agricultural A District to a Residence R-1B District (15th Street South and Medary Avenue area). Action: Open & Close Public Hearing, Motion to approve, Roll Call Alcohol Licenses: 14. Public hearing and action on Resolution No. 91-08, approving an on-off sale wine license for the Brookings Hy-Vee store and authorizing the City Manager to enter into an operating agreement. Action: Open & Close Public Hearing, Motion to approve, Roll Call Other Business: 15. Action on Resolution No. 92-08, a Resolution authorizing Change Order (CCO #6) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, request public comment, roll call 16. Action to approve the DEVELOPMENT AGREEMENT for Tax Increment Plan for Tax Increment District Number Four (TID #4). Action: Motion to approve, request public comment, roll call 17. Adjourn. City Council Packet October 14, 2008 18 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 6. Council Invites & Obligations October 12th Diversity Potluck (sponsored by the Brookings Human Rights Committee) 5-7 pm Old Sanctuary October 15 Children’s Museum Groundbreaking Ceremony 3:00 p.m. Children’s Museum October 17 SDSU Wellness Center Dedication & Ribbon Cutting 1:00 p.m. Wellness Center October 28th Innovation Campus Tour 4:00 pm Innovation Campus October 28th City Council 5 & 6 pm City Hall October 30 Volunteer Appreciation Luncheon 12:00 p.m. Swiftel Center November 4th Election Day NO COUNCIL MEETING November 5th Flu Shots November 11th NO COUNCIL MEETING Nov. 11-15 National League of Cities Congress of Cities Orlando World Center Marriott Orlando, Florida November 18th City Council Meeting 5 & 6 pm City Hall Nov. 18 & 19, 2008 SD Housing Conference Pierre Ramkota November 21st City Employee Recognition Event Day’s Inn November 25th NO COUNCIL MEETING December 9th City Council Meeting 5 & 6 pm City Hall December 16th City Council Meeting 5 & 6 pm City Hall January 13th City Council Meeting 5 & 6 pm City Hall January 27th City Council Meeting 5 & 6 pm City Hall City Council Packet October 14, 2008 19 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 7. City Council member introduction of topics for future discussion*. *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. City Council Packet October 14, 2008 20 6:00 P.M. Meeting CONSENT AGENDA #4 A. Action to approve the agenda. B. Action to approve minutes. C. Action on Resolution No. 85-08, revising fees for various city services. D. Action on Resolution No. 86-08, a Resolution setting forth a schedule of proposed Fines, Fees and Procedures pertaining to the keeping and control of animals in the City of Brookings, South Dakota. E. Action on Resolution No. 87-08, setting the Unit Financial Charge for 2009 Storm Drainage Fees. F. Action on Resolution No. 88-08, authorizing the City Manager to sign a Wine Operating Agreement renewal for Old Sanctuary. G. Action on bids for snow removal equipment for Street Department. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve City Council Packet October 14, 2008 21 CONSENT AGENDA #4 4B. Action to approve the City Council Minutes of August 12th, September 9th and September 23rd. City Council Packet October 14, 2008 22 Brookings City Council August 12, 2008 (unapproved) The Brookings City Council held a meeting on Tuesday, August 12, 2008 at 5:00 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Julie Whaley, Mike Bartley, Ryan Brunner, Tim Reed, Mike McClemans, and Tom Bezdichek. City Manager Jeffrey Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. 2009 Budget Discussion. The City Council reviewed the proposed 2009 Budget document as presented by City Manager Jeffrey Weldon. Weldon reported that the 2010 proposed budget was developed using 4% increase on some revenue lines, 4% increase on most expense lines, 10% on insurance lines, no increase on most transfer in to general fund lines except the utility transfer which is based on their capital budget projections. 2010 has an additional police officer projected in the salary lines. Per discussion at the last Council budget work session, staff has reduced the City Manager’s contingency line by $10,000, added $10,000 for bike route designation within the engineering budget, and added $30,000 for restrooms and a shelter at the community gardens in the park capital budget. The topic for bike routes is on the agenda for the next Transportation Board meeting. Budget policy items and/or changes which may need direction for budget preparation: 1) Cable franchise fee increase from 3 to 5 percent. 2) Taser equipment for Police Department. 3) Creation of Community Development department, hiring a director. 4) Add a street maintenance technician at mid-year. 5) Increase council salary by $50 per month. 6) Participation of I-29 corridor initiative. 7) Institute physicals for volunteer firefighters. 8) Elimination of school district subsidy. 9) Addition of Bike Trails Project to 2009 Budget” 10) Additional request from Visitor Promotions Committee for $50,000 for a community branding and marketing project. VPC Request. It was noted that this request was just received and the deadline was June 1st. The Committee has been working on developing a brand identity for Brookings, to ensure a unified image for marketing. A motion was made by Reed, seconded by Brunner, to increase the Visitor Promotions Committee expenses by $60,000 and funded by the Third B sales tax fund. All present voted yes, motion carried. School District Transfer. Weldon made a recommendation to eliminate the school district funding assistance for the 2009 budget. He noted this was not a recommendation that he made lightly; however, budgets are an issue of setting priorities. Those priorities should reflect the goals, strategies and mission of the organization. The school district funding is a subsidy. The City Council Packet October 14, 2008 23 mission of municipality is different than that of a local school district, which is to educate children. The City’s mission is public safety, parks, recreation, trash collection, and a wide variety of other responsibilities and services. This is a matter of priorities and he noted that educating children is a top priority of society; however, it is not a top priority for a unit of government. The City’s budget is in tight times and it’s his job as city manager to make budget recommendations. He said there was time when there was more funding available between the various units of local government that allowed the City to give more money. He noted this was a donation, a gift, and the city has no legal obligation to make this transfer. It was a gift in recognition relative to payment in lieu of taxes. Brookings Municipal Utilities isn’t taxable. Historically whatever the transfer number has been can not be logically tied to a specific amount. Rural co-op utility companies pay gross receipts tax for electrical or telephone, which is designed for rural areas. Investor owned utilities pay an aggregated amount in lieu of taxes. The City of Brookings is fortunate to have public power. We won’t be able to accurately calculate or draw a comparison based on profitability. If we had an investor owned it would have been NWPS, which is just coming out of bankruptcy and then there’d be no payment. Without public power be in this community the school district would have had a 30% increase in their electric bill and 21% higher in telephone. He said everyone has budget challenges – state, city and school. No where else has he seen a situation where there is a subsidy from a city to the school. He feels that city government can’t afford to solve the school district’s challenges. We have great partnerships but those must be fair and equitable. The City waives all building fees for the school district. They also don’t pay storm drainage fees. There’s also a full-time school resource law enforcement officer and school safety crossing patrols provided by the city. However, the city doesn’t have any financial participation or cost sharing for these services from the schools. Roger DeGroot, Brookings School Superintendent, spoke against the possible loss of city funding from the utilities revenues. He noted that when he took the position as Superintendent he had marveled at partnership between city and school, citing the example of the school parks. Over the past year he has worked with city staff on numerous projects via joint use agreements (pool, gym, mowing, etc). No one could ever say or doubt the relationship between the city and school because it’s exceptional. He thanked the City Council for everything they have done to support the District over the past year. The arrangement since 1988 has been to transfer money from the utilities to the schools. From his research, this is the 20th year of the district receiving money from excess revenues from utilities. Originally, Superintendent Bob Jostad went to the Utility Board to get money in lieu of taxes as a fairness issue. Previously, the money was received directly from the utilities; however, now it is transferred to the city and then to the schools. The numbers have decreased over the years. DeGroot said the school district should continue to receive the funds, noting that all school districts in South Dakota receive taxes from phone service with three exceptions. Most districts received 4% of gross receipts. City Council Packet October 14, 2008 24 He noted that the City will be hiring someone for community and economic development. There is no better draw for economic development than great schools. Many people, prior to making a commitment to moving, check the schools and Brookings has a great reputation and with the City’s help that might continue. He also noted that this would decrease the school district’s general fund budget. New teacher hiring is funded by that budget. These funds would pay for six new teachers. He requested the funding continue. It was fair then and it is fair now. Ann Lamer spoke in favor of the school funding noting that she grew up in Brookings and returned because of the opportunities it can provide to raise her five children. She sees Brookings as a place where education is important. It was one of the main reasons that she and her husband came back here. She said there is no reason greater than that to keep the budget as is and still fund that money. Amy Dunkle, former school board president, said education is a priority of the city and an integral part of community development. She noted that the Council just funded $60,000 for community branding. She doesn’t believe this money to the schools is a hand out. It is a fair arrangement in lieu of taxes. She cited other projects that receive city funding (downtown, airport, and library); all are part of the community just like the schools. She feels eliminating the school funding would be a huge mistake. There’s a fabulous partnership between the city and school now. Spend the money up front for the future of the children. Annie Borns spoke in favor of retaining the school funding noting she is a lifelong community member and educator of children. She said when Mr. Jostad entered into that agreement he thought it was fair and good business practice to invest in the Brookings education system. The funding can impact the children at an early age and provide them with a good start in education. She said there are a lot of great things in Brookings and great opportunities afforded in this community. She urged the Council to think about it and the overall impact on our youth in our community and that it’s good business to invest in them. Council Discussion: The Council asked for history regarding the drop in the funding amount. Rita Thompson, Brookings Finance Manager, said the funding amount was based on the transfer from the municipal utilities, which has reduced over the years. The amount has been 13% of the transfer; however, there is no agreement, resolution or anything in writing stipulating an amount. Weldon said the transfer amount from BMU changes every year and has decreased. In lieu of any formal agreement, city staff needs direction on whether to continue this practice and the amount. If so, there needs to be a way to determine the amount. The city telephone will soon be down to just wireless since many people no longer have land lines. Should the City tie the funding amount to telephone or electric? There needs to be some arrangement for next year to know exactly what that amount will be and where it is coming from. Without a formal agreement, it’s a gift. We don’t have a plan or way to determine what it will be. ACTION: A motion was made by Bartley, seconded by Bezdichek, that the City restore $207,000 to the Brookings School District in the 2009 budget and to come up with plan for funding through negotiations between the School Board and City so this doesn’t happen again. City Council Packet October 14, 2008 25 Discussion on the motion: Bezdichek voiced his support in funding the school district citing funding inequities within city governmental units. He noted that the city has to pay $83,000 a year to rent fire hydrants from the utilities and another $345,000 in street lights. He also noted the funding capacity of Brookings Health Systems and their ability to contribute to the schools. Whaley said it’s a tough budget and for years the city has denied the hiring of more police officers, noting that increased law enforcement is important for the safety of all the children. The city also has had many complaints about the road conditions. City employees aren’t receiving adequate raises in comparison to the school district. City departments need many pieces of equipment that they haven’t been able to purchase and have now reached a safety issue. She said there needs to be documentation on how the city transfers are spent by the school. She said this is a tough decision. As for Brookings Hospital, it is time for them to provide some direct line funding. The City does the Hospital’s payroll, their investing, etc. Pam Merchant, School Board Member, asked how many of these services the city owns and should it own? All services should be re-assessed to determine what can be privately owned. Reed said he was supporting the motion and thinks it is important to tie the district funding to a gross tax percentage. He praised the City Manager for bringing this issue to the City Council. McClemans also said he would support the motion and cited some history when this issue came up in 1999 and 2000. He would support the 13% that had been used previously and would vote in favor of leaving money intact at this time, but was unsure about tying it to anything but the transfer. Brunner said money spent on education is an investment. He would like to tie the funds to something that would be consistent. He would like to see ongoing discussions on how to make it consistent so the city and school knows how to plan. Munsterman cited this activity falls directly within the Council’s 2008 goals that included education and literacy under quality of life goals. Dave Fielder, school principal, complimented the city on the recent “community-build” park. He’s never seen a community build project like was done in Brookings and commended the community for its partnerships. He urged the Council to keep those partnerships no matter what it takes. On the motion, all present voted yes; motion carried. 6:00 P.M. CITY COUNCIL MEETING Consent Agenda: Consent Items F and G were removed from the consent for additional discussion. A request from the hospital board was added to the agenda. A motion was made by Bezdichek, seconded by Whaley, to approve the consent agenda, which included: A. Action to approve the agenda, as amended. B. Approval of July 24th City Council minutes. City Council Packet October 14, 2008 26 C. Action to appoint Lonnie Bayer to the Brookings Committee for People who have Disabilities. Term to expire January 1, 2009. D. Action awarding bids for Golf Course Materials and Labor. Award schedule A (Labor to shade greens) to Myers Grading of Elkhorn, NE for $28,800. Bid also received by East Coast Shaping of Dalton, MA for $65,000. Award Schedule B (Concrete Sand delivered) to L.G. Everist of Brookings for $6,750. No other bids received. Award Schedule C (organic peat) to Dakota Peat of Grand Forks, ND for $7809.39. No other bids received. E. Action awarding bids for Irrigation Materials to Hydrologic, Inc.of Sioux Falls in the amount of $27,066.19. No other bids were received. F. Action awarding bids for Safety Bollards for the Downtown Streetscape project. (REMOVED FROM CONSENT) G. Action awarding bids for the Downtown Streetscape Site Furnishings. (REMOVED FROM CONSENT). H. Action on Resolution No. 70-08, vacating a portion of Twelfth Avenue in the City of Brookings abutting Lots 6 and 7, Block 4, Randi Peterson's Addition, and Lots 4 and 5, Block 1, Wheaton's Addition. Resolution No. 70-08 - STREET VACATION WHEREAS, a petition to vacate has been filed with the City Clerk of the City of Brookings, and WHEREAS, the petition was filed in proper form and signed by one hundred percent (100%) of the adjacent property owners. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brookings: That the portion of Twelfth Avenue in the City of Brookings abutting Lots 6 and 7, Block 4, Randi Peterson's Addition, and Lots 4 and 5, Block 1, Wheaton's Addition: ALL in the City of Brookings, County of Brookings, State of South Dakota is vacated subject to a right-of-way easement over the entire portion of the street to be vacated. I. Action on Resolution No. 71-08, vacating a portion of Fourteenth Avenue in the City of Brookings abutting Lots 8-11, Block 2, Wheaton’s Addition, and Lot 1, Amidons Addition, and Lots 1 and 2, Block 1, Saunders Addition. Resolution No. 71-08 - STREET VACATION WHEREAS, a petition to vacate has been filed with the City Clerk of the City of Brookings, and WHEREAS, the petition was filed in proper form and signed by one hundred percent (100%) of the adjacent property owners. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brookings: City Council Packet October 14, 2008 27 That the portion of Fourteenth Avenue in the City of Brookings abutting Lots 8 - 11, Block 2, Wheaton's Addition, and Lot 1, Amidons Addition, and Lots 1 and 2, Block 1, Saunders Addition; ALL in the City of Brookings, County of Brookings, State of South Dakota is vacated subject to a right-of-way easement over the entire portion of the street to be vacated. J. Action on Resolution No. 72-08 designating the Park & Recreation Center as a Temporary Convention Hall for the Firemen’s Dance. Resolution No. 72-08 Resolution Designating the Park and Recreation Center as a Convention Hall WHEREAS, the Brookings City Ordinance Section 5-21 “Temporary on-sale license for use at convention Hall”, states “Any public convention center or hall designated by resolution of the City is hereby designated as a convention hall of the City for purposes of temporary on-sale alcoholic beverage licensing. The use of each convention hall by any person holding a temporary on-sale alcoholic beverage license shall be governed by the rules or regulations pertaining to each respective facility.” WHEREAS, SDCL 35-4-14.2 further states there may be issued in any municipality one on-sale license to be operated at a designated convention hall; and WHEREAS, the Park and Recreation Center located at 221 Main Avenue is utilized for many different functions and events; and NOW, THEREFORE BE IT RESOLVED that the Park and Recreation Center be designated as a Convention Hall on September 6 and 7, 2008. K. Action on Resolution No. 65-08, a Resolution Opposing Initiated Measure #10. Resolution No. 65-08 Resolution Opposing Initiated Measure #10 BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows: WHEREAS, Initiated Measure #10 would prohibit any city from paying dues to any association that lobbies; WHEREAS, it is far more efficient and cost effective to join together with our fellow cities through the SD Municipal League for coordinated communication with the Legislature than to have each city stand alone; WHEREAS, the costs to the taxpayers of having each city monitor, report, and travel to Pierre to participate in the Legislative Session would be much greater than any dues to the SD Municipal League; City Council Packet October 14, 2008 28 WHEREAS, coordinated communication with Legislators leads to more efficiency in the Legislative process and has saved millions of dollars in taxpayer funds; WHEREAS, restricting the ability of South Dakotans to support candidates and communicate with their elected public officials is a violation of their right to freedom of speech; WHEREAS, the measure will be challenged in court and will most likely be found to be unconstitutional, costing millions of dollars in taxpayer money; WHEREAS, Initiated Measure #10 does not limit State government-paid lobbyists, out-of-state lobbyists, or corporate lobbyists, but only stifles coordinated voices for local control; WHEREAS, the City of Brookings finds that municipal officials throughout South Dakota are dedicated, honest and ethical people with the best interests of their cities in mind and that cities take great pride in providing open, honest government to our citizens; WHEREAS, the thousands and thousands of South Dakotans who do business with the State, Cities, Counties, and other governmental entities should not be penalized for providing such services; WHEREAS, civic groups who work to better their community, and often require local funding to provide their services should not be prohibited from communicating their needs to local public servants; WHEREAS, the forces supporting Initiated Measure #10 will not reveal the source of their funding, leaving the reasonable assumption that out of state special interests are once again attempting to hijack the South Dakota ballot and abuse our initiative process; THEREFORE let it be resolved that the City of Brookings strongly opposes Initiated Measure #10 and urges the citizens of South Dakota to vote “NO” on the measure. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: L. Action to appoint Tyler Luckhurst to the Visitor Promotions Committee as an SDSU representative. Term to expire January 1, 2009. M. Action to appoint Tyler Luckhurst to the Brookings Transportation Board as a SDSU representative. Term to expire January 1, 2009. City Council Packet October 14, 2008 29 N. Action on Resolution No. 75-08, concurring in the placement of stop signs at the intersection of Prince Drive and 32nd Avenue. Resolution No. 75-08 Concurring In The Placement of Stop Signs At the intersection of 32nd Avenue and Prince Drive WHEREAS, Section 82-373 of the Revised Ordinance of the City of Brookings, provides for approval by the City Council for placement of stop signs in locations other than along through streets. NOW, THEREFORE, BE IT RESOLVED that the City Council concurs in the recommendation of the City Engineer and the City Manager and approves the placement of stop sign on Prince Drive at its intersection with 32nd Avenue. On the motion, all present voted yes; motion carried. Bids – Safety Bollards. A motion was made by Brunner, seconded by Bartley, to award the bid to J.H. Larson in the amount of $360 each for 74 for a total of $26,640 for safety bollards for the downtown streetscape. Other bids received at the August 5th bid letting: Dakota Supply, Sioux Falls ($573 each, $42,402), Graybar Electric, Brookings ($360.62 each, $26,768), and Crescent Electric, Sioux Falls ($600 each, $44,400). Discussion: Bezdichek asked if the bollards could be used to lock bikes to. No, the locations are in the crosswalks and would not work well for bikes. All present voted yes; motion carried. Bids – Streetscape Site Furnishings. A motion was made by Whaley, seconded by McClemans, to award bids as follows: SCHEDULE A – BENCHES (22): Award bid to Dakota Fence for $21,307 TOTAL BID PRICE. The unit price does not include freight, while the Total Bid does. Specifications indicated bid would be awarded on total price; unit price was for purpose of change-order if more or less were ordered. (Note: R. J. Thomas does not meet minimum specification, in materials (bid- 1/8inch strap steel vs ¼ inch specified and Peterson Mfg. does not meet minimum specifications in design and material (bid flat steel bench legs vs cast iron ornamental design specified.) SCHEDULE B – WASTE RECEPTACLES (22): Award bid to Dakota Fence for $15,973. TOTAL BID PRICE. (Note: R. J. Thomas does not meet minimum specifications in materials & design; Peterson Mfg. does not meet design specifications;(domed top specified, not available). SCHEDULE C – BIKE RACKS (22 Multi Loop 10 Single Loop): Award bid for schedule C bike racks (22 multi Loop) to Dakota Fence for Total Price of $6,553. Delete purchase of 10 single loop racks (not needed). (Note: R. J. Thomas and Peterson Mfg. do not meet minimum specifications (bid 2 3/8 inch OD on multi-loop, 2 7/8 inch OD was specified). SCHEDULE D – PLANTERS (24): Award bid to Peterson Mfg. Co. for Total bid of $12,168. (Note: Low bid of Peterson Mfg. does meet specifications.) City Council Packet October 14, 2008 30 ALTERNATE BID 1 AND 2. Not applicable as not all equipment comes from one company. BID TAB STREETSCAPE FURNITURE Dakota Fence Peterson Mfg. R. J. Thomas Mfg. August 5, 2008 Fargo, ND Denison, Ia Cherokee, Ia. BID SECURITY Bid Bond Bid Bond Cashier's Check SCHEDULE A. BENCHES (22) $887 each $869 each $709.02 each TOTAL BID $21,307 $19,118 $15,598.44 SCHEDULE B. WASTE RECEPTACLES (22) $662 each $675 each $591.89 each TOTAL BID $15,973 $14,850 $13,021.58 SCHEDULE C. BIKE RACKS Mutli-Loop (22) $277 each $219 each $268.31 each TOTAL BID $6,553 $4,818 $5,902.82 Single Loop (10) $160 each $185 each $159.26 each TOTAL BID $1,895 $1,850 $1,592.60 SCHEDULE D. PLANTERS (24) $552 each $507 each No bid TOTAL BID $14,169 $12,168 ALTERNATE BID 1. LUM SUM $1,256 No bid $3,585.98 Schedule A,B,C Quantity Discount ALTERNATE BID 2. LUM SUM $788 No bid No bid Schedule D Quantity Discount Discussion: Bezdichek asked if city staff had information on other bike rack designs including multi and single loop designs. He noted the new emphasis on bike and pedestrian traffic in town and the university. He suggested a more innovative and creative design than what was proposed citing examples across the nation. He also asked about the location for a bike exchange program. Allyn Frerichs said they are limited on locations and size and there will be an additional 110 spots that didn’t exist before. The proposed bike racks are surfaced mounted and can easily be replaced in the future. All present voted yes; motion carried. First Reading – Ordinance No. 30-08: SB126. First reading was held on Ordinance No. 30-08, an Ordinance establishing procedure for the issuance and regulation of on-sale licenses for full-service restaurants in the City of Brookings, South Dakota (Senate Bill 126). Public Hearing: August 26, 2008 First Reading – Ordinance No. 31-08: Sidewalk Specifications. First reading was held on Ordinance No. 31-08, an Ordinance amending Article V of Chapter 74 of the Code of Ordinances of the City of Brookings and pertaining to Sidewalk Specifications. Public Hearing: August 26, 2008 Temporary Liquor License – Fireman’s Dance. A motion was made by Reed, seconded by Brunner, to approve a temporary liquor license for the Fireman’s Dance at the Park & Recreation Center on September 6, 2008. All present voted yes; motion carried. Resolution No. 76-08 – Hope VI Grant. Randy Hanson, Mills Construction, indicated that the materials for the grant submission were not ready and the application process was more City Council Packet October 14, 2008 31 extensive than previously thought. He plans to submit an application in the 2009 grant cycle and requested the City’s support at that time. A motion was made by Bartley, seconded by Brunner, to table Resolution No. 76-08, authorizing support for a HOPE VI Grant application. All present voted yes; motion carried to TABLE. Resolution No. 74-08 – Change Order. A motion was made by Brunner, seconded by Reed, to approve Resolution No. 74-08, authorizing Change Order #5 (CCO#5) for 2008- 03STI, Downtown Streetscape Project. All present voted yes; motion carried. Resolution No. 74-08 A Resolution Authorizing Change Order #5 (CCO#5) For 2008-03STI Downtown Streetscape Project Winter Brothers Underground, Inc., Sioux Falls, South Dakota BE IT RESOLVED by the City Council that the following change order be allowed for 2008- 03SSI, Downtown Streetscape Project: Construction Change Order Number 5: Adjust estimated the bid contract for the additional work of removing the steam tunnel and all asbestos containing material to an estimated depth of 2.5 to 3.5 feet below the final road grade. The contractor will not be charged tipping fee. This work is on Main Avenue between 5th Street and the south end of the project, or steam line, which ever comes first. The removal work will be measured and paid for at a cost of $99 per lineal foot for an estimated length of 1000 feet for a total change order increase to the contract of $99,000. Growth Partnership MOU. A motion was made by Whaley, seconded by Reed, to approve a Memorandum of Understanding for the Growth Partnership. All present voted yes; motion carried. MEMORANDUM OF UNDERSTANDING Between South Dakota State University Growth Partnership and the City of Brookings This Memorandum of Understanding, dated August 12, 2008, is by and between the South Dakota State University Growth Partnership (hereinafter referred to as the SDSU Growth Partnership) and the City of Brookings concerning the maintenance and repair of the common roadways and utilities within the SDSU Innovation Campus. WHEREAS, the SDSU Growth Partnership was established for the purpose of stimulating tech- based economic development in the City of Brookings and the State of South Dakota, and WHEREAS, the SDSU Growth Partnership entered into a 99-year ground lease with the Board of Regents to develop 125-acres of land located north of 6th Street; east of 22nd Avenue; and south of the Highway-14 Bypass, adjacent to SDSU’s main campus, and WHEREAS, the City of Brookings has developed a plan to stimulate economic development and increase municipal services to enhance the quality of life in Brookings, and WHEREAS, both the City of Brookings and the SDSU Growth Partnership have agreed: to cooperate in the development of South Dakota’s first University related research park, referred City Council Packet October 14, 2008 32 to herein as the “SDSU Innovation Campus”; to assist in stimulating tech-based economic development in the City of Brookings and the economy of South Dakota, and WHEREAS, the SDSU Growth Partnership has developed an infrastructure master plan concerning the installation of streets, curb, gutter, sidewalks, detention ponds, and underground utilities. WHEREAS, the SDSU Growth Partnership has raised funds to install infrastructure, but lacks on-going funds for maintenance and repair, and WHEREAS, the SDSU Growth Partnership and the City of Brookings recognize that proper maintenance, repair and management of the streets and infrastructure is critical to the development and growth of the SDSU Innovation Campus, and WHEREAS, it is the intent of all parties to this Agreement to encourage a cooperative relationship among the parties to implement a consistent approach to the maintenance and management of the streets and infrastructure of the SDSU Innovation Campus, and WHEREAS, the parties to this Agreement recognize the need for cooperation in the enforcement of laws within the SDSU Innovation Campus and agree that any Joint Powers Agreements and Operating Agreements for policing of SDSU Campus property shall also include the SDSU Innovation Campus, and WHEREAS, the City of Brookings acknowledges that development and growth of the SDSU Innovation Campus will attract new business growth in Brookings. These companies will stimulate the economy of Brookings through the creation of high-tech/high-paying jobs, which will provide additional revenues and funding resources that will impact and likely increase revenues of the city, and WHEREAS, it is the goal of both parties to this Agreement for the City of Brookings to maintain and repair SDSU Innovation Campus streets and infrastructure so the SDSU Growth Partnership will have the ability to attract existing and new high-tech businesses into the SDSU Innovation Campus, NOW THEREFORE, in order to accomplish the objectives set forth above, the parties hereto agree to the following: 1. The City of Brookings will provide the following services: a. Repair and maintain common roadways, common curb and gutter, and common sidewalk areas beginning at the main entrance of the Innovation Campus off 22nd Avenue, through the common roadway ring, and existing back onto 22nd Avenue. Repair and maintenance of all common roadways will include chip and seal, overlay, crack sealing and street sweeping as provided by the City on all City dedicated right-of-way streets (see Exhibit A attached). City Council Packet October 14, 2008 33 b. Snow removal in common roadways beginning at the main entrance of the Innovation Campus off 22nd Avenue, through the common roadway ring, and existing back onto 22nd Avenue. Snow removal will be stockpiled in designated areas or adjacent landscape areas in a manner to promote safety for vehicles and pedestrians throughout the season. Fire lanes, service areas, garbage and utility enclosures, and delivery areas will be kept clear (see Exhibit B attached). c. Maintenance and repair of storm sewer system, water, and all utilities provided by the City and Brookings Municipal Utility (BMU). 2. A representative from the City of Brookings Street Department will meet with the CEO/Executive Director on an annual basis to inspect the common roadways for the purpose of identifying routine maintenance or repairs needed which shall be made in accordance with the City’s street maintenance schedule. The City of Brookings will thereafter undertake routine maintenance in a timely manner to assure the Innovation Campus maintains its professional aesthetics and landscaping - key to attracting high-tech companies to Brookings. 3. The City Manager will meet at least annually with the CEO/Executive Director to discuss the status of maintenance and repairs yet to be performed or previously performed; to review the performance of the schedule for street maintenance and repairs; and to discuss other matters pertinent to fulfilling the purposes of the Agreement. 4. The SDSU University Police Department shall police the SDSU Innovation Campus as part of its SDSU primary jurisdiction and the City of Brookings Police Department shall provide mutual aid and assistance to the University Police Department, as provided in any existing Operating Agreements or Joint Powers Agreements for Police Assistance, and as part of this agreement. 5. The provisions of 1-4 shall not be in effect until the Growth Partnership has insured that the necessary easements and rights-of-ways have been properly dedicated pursuant to the city-approved engineering and construction plans, and duly recorded with the county. I-29 Corridor Initiative MOU. A motion was made by Brunner, seconded by McClemans, to approve the City of Brookings participation in the I-29 Corridor Initiative Memorandum of Understanding. All present voted yes; motion carried. I-29 Corridor Regional Growth Strategy Memorandum of Understanding (MOU) PURPOSE: The purpose of this Memorandum of Understanding (MOU) is to establish a general framework for cooperation and guide decision making throughout the process of developing an I-29 Corridor Regional Growth Strategy. This collaborative effort is to encourage economic viability, promote a healthy collaboration environment and enhance the quality of life in South Dakota. City Council Packet October 14, 2008 34 TERM: This MOU shall serve until such time as a Regional Growth Strategy has been developed and adopted by the members of the I-29 Corridor Task Force, at which time the MOU shall expire. Adoption of the Regional Growth Strategy is anticipated to occur by the end of May 2009. If the regional Growth Strategy is not completed by this time, the Parties agree to review the MOU and amend the terms of the MOU to improve the effectiveness of the program. The amendments shall be in writing. Unless otherwise stipulated, any amendments to this MOU will take effect when signed by all parties. PARTICIPATING ORGANIZATIONS: The organizations initiating this MOU, collectively referred to as the “Parties”, include, but are not limited to: municipalities, economic development organizations, educational institutions, government agencies and other non-profit entities. The initiating Parties are: Other entities within the I-29 Corridor, currently defined as the region between North Sioux City and Watertown and from the eastern South Dakota border extending west of Interstate 29 (currently as far as Yankton), are invited to sign the MOU and become participating organizations. RATIONALE: Competition for economic growth is escalating regionally, nationally and globally. In this context, South Dakota in its entirety is a small region with a population of less than 800,000. As currently defined, the I-29 Corridor includes a population of approximately 400,000. In this broader environment it is beneficial, whenever possible, for organizations to act supportively and collaboratively in pursuing economic development opportunities. Recent developments have positioned the I-29 Corridor for significant growth and economic expansion. Regionally collaboration is necessary to maximize the positive impact of these opportunities. Examples of these developments and opportunities, include, but are not limited to: Energy • Potential Hyperion Energy Center • Multiple oil pipeline projects • Multiple biofuels companies and production plants • New state incentive for biodiesel production • Location of multiple wind energy component manufacturers • Significant capacity for wind energy production Biotechnology and Medical Research • Multiple healthcare systems with growing research efforts • Growing private sector research companies with a focus on human and animal health treatment and diagnostics • University and private sector crop and animal related research Information Assurance and Data Security • USGS EROS Data Center • Presence and needs of large financial and healthcare institutions City Council Packet October 14, 2008 35 • Multiple private data • DSU national Center of Excellence in Information Assurance Education • Cost effective and available power • REED Network, creation of additional diverse data transmission paths • Central, yet remote, location a potential benefit These developments and opportunities are catalyzed by an emerging support infrastructure/ecosystem for the development of these opportunities, including but not limited to: • Supportive state leadership and strategies, including Governor Rounds and GOED’s marketing and recruitment efforts • Expanding and complementary university research efforts, including, but not limited to 2010 Research Centers • Alignment of postsecondary training and education programs • South Dakota State University Innovation Campus (research park) • Sanford Research Park • GEAR Center and University Center Science and Technology Park • Existing and planned incubators in Sioux Falls, Brookings, Madison, Vermillion and Yankton • Increased availability of equity investment CLUSTER ANALYSIS AND REGIONAL GROWTH STRATEGY PROJECT: The Cluster Analysis and Regional Growth Strategy will serve as the basis for the future organizational structure, focus areas and actions of the I-29 Corridor. The project components include: • An Economic Scan and Regional Cluster Identification, Validation and Analyses • Development of Regional Growth Strategy • Participating communities will also have the option to contract for the development of a corresponding Individual Community Growth Strategy. The Growth Strategy will include recommended steps/actions addressing the following areas: • I-29 Corridor Organizational Structure • Target Industry Development and Recruitment • Transportation • Workforce • Quality of Life • Infrastructure • Others to be identified Planned steps and timeline for implementing and completing the Cluster Analysis and Growth Strategy include: 2008 Action June – July Draft RFP and Solicit Proposals June – August Secure Project Funding August Award Project Contract City Council Packet October 14, 2008 36 September - October Kick off Project with Regional Summit November Interim Report 2009 Action February Presentation of Regional Growth Strategy March – May Development of Individual Community Growth Strategies The I-29 Corridor Task Force, consisting of the Parties below, shall participate as partners to financially support in the development of a Regional Growth Strategy and serve as a body for monitoring and communication with respect to the MOU and any issues arising from it. As evidenced by their acceptance of this Memorandum of Understanding, the Parties, by their authorized signatories, have executed this document on the dates set out below. Name, Title, Organization Date The additional Affiliated Parties listed below express their support for the I-29 Corridor and commitment to provide non-financial support and/or to participate in the Regional Growth Strategy development process. Name, Title, Organization Date The City of Brookings has been on the forefront of launching a new regional economic development initiative consisting of municipalities, higher education institutions, and local economic development agencies along the I-29 Corridor. This effort has been on the City’s priority list for a few years and was launched by Mayor Munsterman a few months ago. The efforts of charter members have been to develop a Memorandum of Understanding (MOU) to serve as a governing document until the organization can be more formalized; and the development of a Request for Proposal (RFP) for a consultant to undertake an economic cluster analysis. Depending upon the results of this effort, more detailed strategies will be developed after that. At this point, participants are formally joining the effort by approving the MOU and making financial commitments for the organization’s expenses. The City of Brookings will serve as the fiscal agent for the organization and we will set up a fiduciary fund in the budget to accommodate the finances. Resolution No. 73-08 – I-29 Corridor Funding. A motion was made by Brunner, seconded by Reed, to approve Resolution No. 73-08, approving an expenditure of $10,000 for I-29 Corridor Initiative. All present voted yes; motion carried. Resolution No. 73-08 A Resolution Appropriating Unemcumbered Funds from the Third Penny Sales and Use Tax Revenue Fund for Purposes of Paying Dues to Membership in the I-29 Corridor Initiative WHEREAS, it has been a goal of the City of Brookings to participate in a regional economic development collaborative along the eastern portion of the state; and City Council Packet October 14, 2008 37 WHEREAS, several communities, including Brookings along and near the Interstate 29 corridor in South Dakota are joining with other local economic development agencies and institutions of higher education to form a regional strategy to further overall economic growth, workforce development, and research opportunities; and WHEREAS, membership in this collaborative is via the adoption of a Memorandum of Understanding (MOU) which will serve as an interim governing document until the organization if more formalized; and WHEREAS, the City of Brookings and all other members recognize the need for financial resources to carry out the mission of this effort, and that such resources must from come from participating members; and WHEREAS, pursuant to state law, sales tax generated from third penny revenue may be used to promote the community and this initiative meets this criteria; and WHEREAS, sufficient third penny sales tax revenue exists to finance said participation. NOW, THEREFORE, IT IS HEREBY RESOLVED: That the City Council of the City of Brookings, South Dakota does hereby appropriate the sum of $10,000 from the 2008 budget of the third penny sales and use tax fund to the I-29 Corridor initiative. Animal Control Requirements. The City Council reviewed draft amendments to the City’s Animal Control Ordinance. No action was taken. Transfer from Brookings Health Systems. (AGENDA ADDITION). A motion was made by Bezdichek, seconded by Whaley, to instruct the city manager to request $276,000 from the Brookings Health Systems for the City’s 2009 budget. AMENDMENT: A motion was made by Bartley, seconded by Reed, to remove the $276,000 reference and add Brookings Municipal Utilities to the motion. All present voted yes on the amendment. MAIN MOTION AS AMENDED: A motion was made by Bezdichek, seconded by Whaley, to instruct the city manager to request funding from the Brookings Health Systems and Brookings Municipal Utilities for the City’s 2009 budget. All present voted yes; motion carried. Adjourn. A motion was made by Brunner, seconded by Reed, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:59 p.m. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 38 Brookings City Council September 9, 2008 (unapproved) The Brookings City Council held a meeting on Tuesday, September 9, 2008 at 5:00 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Julie Whaley, Mike Bartley, Ryan Brunner (arrived at 6:00 p.m.), Tim Reed, and Tom Bezdichek. Council Member Mike McClemans was absent. City Manager Jeffrey Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Update by HDR on the Traffic Impact Study for the 34th Avenue Improvement Project. The City of Brookings, Brookings County and industrial park businesses have partnered in the Brookings Industrial Park Traffic Impact Study. The team includes of Jeff Weldon, City Manager; Jackie Lanning, City Engineer; Rick Laughlin, HDR; and Jason Kjenstad, HDR. Rick Laughlin presented the progress report. The purpose of the Traffic Impact Study is to analyze current traffic operations, determine future traffic volumes, evaluate the need for Interstate crossings and other improvements and recommend program of improvements. The study area is bounded on the north by the Bypass, on the south by 32nd Street S, on the west by 22nd Avenue and on the east by 34th Avenue. HDR reported on the turning volumes and level of service or congestion for intersections within the study area. HDR also conducted a travel survey which questioned work start and stop times, use of carpools, use of other transportation modes and routes to/from work. 1139 people responded to this survey which is an outstanding response rate. South Dakota DOT conducted traffic signal warrant studies which HDR verified with this study. The recommendation is for traffic signals to be installed at the east ramp of the Interstate and 6th Street as well as 6th Street and 32nd Avenue. A provision to eventually move the signal from 32nd Avenue to 34th Avenue will be made using alternate roadways to get to the 34th Avenue intersection. HDR also reviewed Brookings Growth Areas from the 2020 Vision Plan for the City of Brookings. The next steps in the study include finish the traffic forecasts, develop future alternatives, analyze traffic operations, prepare recommendations, present to the public for comment and finalize the report. HDR also presented future traffic alternatives that included possible extensions of Eastbrook Drive, 20th Street, 26th Street, or 32nd Street S across the Interstate. Draft Amendments to “Sunday Sales” Ordinance pertaining to alcohol sales. Steve Britzman, City Attorney, noted that the existing ordinance pertaining to sale of alcohol on Sundays has been modified over the years. The proposed changed were prompted by recent changes in state law that include some liberalization in hours and food requirements. He recommended that city ordinances be consistent with the state statutes. First reading of the proposed ordinance is scheduled for September 23rd. 6:00 p.m. Meeting Review. The City Manager responded to questions pertaining to the action items on the agenda. Council Invites & Obligations. Shari Thornes, Brookings City Clerk, provided a briefing on upcoming invitations and obligations. City Council Packet October 14, 2008 39 6:00 P.M. CITY COUNCIL MEETING Consent Agenda: Agenda additions: Resolution 77-08, Resolution 78-08 and a discussion regarding events at the Swiftel Center were added to the agenda. The executive session was deleted. A motion was made by Reed, seconded by Whaley, to approve the agenda, which included: A. Action to approve the agenda as amended. B. Approval of the August 26, 2008 City Council minutes. C. Action on Resolution No. 68-08 - declaring annual surplus items. Resolution No. 68-08 Appraising and Authorizing Sale of Surplus Property WHEREAS, the City of Brookings has surplus items as listed in a Notice of Sale that are no longer necessary or useful for City purposes, and it is the desire of the City to dispose of same as surplus property; NOW, THEREFORE, BE IT RESOLVED, that all the attached listed property declared surplus by the City Council. FURTHER BE IT RESOLVED by the City Council that the property be offered for sale at public auction on September 25, 2008. 2008 SURPLUS PROPERTY LISTING ENGINEERING DEPT.: blue print machine, metal in/out basket, Black and Decker 12V drill, green chalkboard, (9) chairs, shelving, (5) 8’x3’ oblong tables, (3) 8’x2.5’ oblong tables, 8’x’3’x’1’ platform stage, lunchbox, microwave cart, (2) 8’x4’ privacy panels on rollers, Compaq monitor V700 15”, space maximum copyholder, (2) Spirit Motorola radios and chargers (need repair), (3) blue partition panels, (2) beige partition panel 7’ tall, beige partition panel 5’ tall FINANCE DEPT./CITY IT DEPT.: 22” CRT Computer Monitor, (4) 15” CRT Computer Monitors FIRE DEPT.: Lexmark X5150 Scanner/Printer / Ser.#: 01520067725, 1981 Ford LN8000 truck chassis / VIN # R80CVM31673, 250 gallon fiberglass water tank, box 20X28 air intake filters, Manual hose reel with 1-inch rubber hose, (2) Electric overhead garage door openers, Bell & Howell 16mm movie projector, Movie Screen HUMAN RESOURCES: old Laptop Computer, Magnavox TV/VCR – Serial #28157883 LIBRARY: (4) Various metal racks, (3) Floor rockers, (2) Typewriters: Sharp XQ 320 and Sharp ZQ 330, Chair frame, Motor, Flower pots, Video mailers, Printers: Epson stylus color 580, Epson 740, Lexmark Z816, HP psc2100 (broken), (16) Computers, 6 monitors, SkipDr, CD resurfacer – needs work on motor, (2) PC keyboards, Dozens of power cords PARKS, RECREATION & FORESTRY: 1976 Dodge ½ ton pickup (License 3247), 1979 Chevy ½ ton pickup (License 3316), Sullair 750 Air Compressor - needs work, Homelite Cement Saw, Radial Arm Saw, Dodge Pickup Box Liner, Small Air compressor - needs work, Small Roto Tiller - needs work, Pickup Tool Box, Apartment Size Refrigerator, Older Small Copy Machine POLICE DEPT.: Metal desk, Wood desk, Office chair, Top for a desk, Portable generator, (2) upholstered chairs, photo lab equipment, VW engine, Wood cabinet, 5-drawer file cabinet, Wood stand, (3) fishing rods, Tackle box w/tackle, Numerous traffic cones, Halloween flag, Foam “tubes” 6 containers of wood preservative, 72 Bikes: #1432 Blue KIHY018197, #1436 Black/Silver Rand C990263674, #1437 Yellow 67125771, #1440 Maroon Murray 69995X92, #1446 Green, #1451 Blue/Black Roadmaster 30924573, #1452 Red Raleigh M0K6411535, #1454 Blue Roadmaster RU417WMJT, #1456 Blue 5041854, #1457 Orange Huffy B00C047777, #1458 Silver/Orange Huffy BB01C074564, #1460 Blue Raleigh YF98F13356, #1462 Orange Mongoose SNXDS05C07, #1463 Purple Huffy 0359197613, #1464 Blue Mongoose, #1465 Maroon Huffy S00C0013718, #1467 Black Raleigh M02000398, #1468 Yellow Huffy, #1469 Pink 857583, #1470 White/Pink YJN, #1471 Orange Huffy 846049011, #1472 Black Huffy 966869089, #1476 Red Huffy 80557HYFF, #1477 Blue Bianchi, #1479 Blue/Silver 59341828, #1480 Chrome 683387979, #1481 Roadmaster HM0394558, #1482 Red Roadmaster, #1483 Red Roadmaster, #1484 Purple/Pink Murray 65231X920, #1485 Blue/Purple Roadmaster, #1486 Gray/Black Pacific AV186552, #1487 Green Magna 854977, #1489 Blue/Red Roadmaster SD06C65436, #1490 Red/Chrome 8536613, #1491 Green GB050408581, #1492 Blue/Silver Trek TBI0415C5, #1493 Purple Huffy SNHEC07C43, #1494 Blue Schwinn P2A04190, #1495 Orange Mongoose FSD06E44951, #1497 Blue Roadmaster SNFSD05C16, #1499 Blue/Black MGX BC10114491, #1500 Black/Silver Schwinn 5268ZWM, #1501 Teal/Silver Huffy BB04D39364, #1503 Blue Huffy City Council Packet October 14, 2008 40 9220712F0038, #1505 White 852809, #1507 Black Schwinn S3C2172, #1512 Magna 95TD298976, #1519 Purple Roadmaster RMC60554435, #1520 Blue Roadmaster SNFSD05C00, #1523 Silver/Blue Roadmaster GK5197862, #1524 Lil/Red/Blue Roadmaster SNFSD06655, #1528 Green 01TD113950, #1530 Lil/Red/Blue Roadmaster SNSDS07B77, #1541 Magna 02TD9309131, #1543 Magna 02TD5498997, #1546 38511850, #1548 DCL04B01950, #1550 Huffy 667201170M, #1551 Roadmaster F04020006853, #1552 Schwinn ACE02F0045, #1553 Magna 02TD3567203, #1554 Roadmaster RNC23340548, #1555 Roadmaster K3CZ008619, #1556 Roadmaster F306023642, #1559 Huffy 90240HUFFY, #1561 L050418593, #1562 Roadmaster SNSFD05D06, #1563 Huffy 83076HUFFY, #1564 Huffy 599E00003068, #1565 Huffy 4519908191, #1570 88388797 STREET DEPT.: Walnut Computer Desk, Oak Computer Hutch, Gray 5-Drawer File Cabinet, Brown 2-Drawer File Cabinet, IBM Selectric III Typewriter: 6705114613090, Olivetti Typewriter, Gray Carpet remnant, Sharp Fax Machine: 1999 model: F02550 (8810212Y), Magazine Files, Misc. Office Supplies, Computer CPU Stand, 1989 Fuel Pump: Gilbarco 656-1 (DA043008FU), 1989 Fuel Pump: Gilbarco 655-1 (DA043800JU), 3” Water Pump Gorman Rupp: 13A 2 AEND (299149), 1968 Generator: SF-1.5MD (NA68-0570), 3 HP Sprayer Pump, 16 HP Briggs Engine SWIFTEL CENTER: Computer Monitor, (2) Paper Towel Dispensers, (2) Desk Chairs, Bleacher Puller (Homemade), Trimmer (Needs Work), Wood Door, (16) 8’ Wood Tables, (4) Plastic Garbage Cans, (10) Metal carts with casters, Ford Tractor w/ digger, Washing Machine (Does not work), Dryer (Does not work), Riding Lawn Mower (Needs work), (2) Coiling metal Doors, (2) Chalk Boards, (2) Wood Shelves, (2) Wood Easels, Vacuum Cleaner (Does not work), (2) Cash Registers (Do not work), (4) Misc. Metal Lids, (20) Salad Crocks, (5) Candle Holders/Vases, (3) Plastic Tea Display Containers, (3) Wood Headboards, Coffee Pot, (8) Rectangle Serving Bowls, Fiber Optic Christmas Tree, (11) Wicker Baskets, (23) Round Plastic Bowls, (6) Plastic Plates, (5) Wire Baskets, (12) Glass/Colored Bowls, Tea Machine, (4) Plastic Juice Pitchers, (12) Plastic Flutes, (6) Half & Full Sheet Pan, ¼ Size Lexon Lid, (2) Warmers (do not work), (2) Lexon Half Pans, 1 Gallon Tea Holder, (2) Coffee Cup Liners, Bunn Base Warmer, Miscellaneous Wood Pallets, Miscellaneous Desk Parts D. Action to approve an Animal Control Agreement with Brookings County. Animal Control Enforcement Agreement City of Brookings / Brookings County This agreement is made and entered into this 1st day of August, 2008, between the Brookings County Sheriff’s Office, hereafter referred to as “County” and the City of Brookings Police Department, Animal Control Division, hereafter referred to as “City” for the purposes of providing animal control services within Brookings County. Both parties understand, agree and enter into this agreement under the following terms and conditions: 1) The City agrees to transport stray animals for the Brookings County Sheriff’s Office. 2) The City agrees to provide all necessary equipment required to perform animal control services, including an appropriate vehicle for transporting animals. 3) The City agrees to provide all reporting, documentation and follow-up monitoring related to animal bite reports occurring within Brookings County. 4) The City agrees to provide liability and workman’s compensation insurance for City Animal Control personnel while performing duties under this agreement. 5) The City agrees to respond to all animal bites and significant scratches. 6) The City agrees to collect all charges, fines and fees.(City will reimburse only the fines to the County) 7) The County agrees that for any call requiring the pick-up, impoundment or transportation of an animal, a Deputy Sheriff will respond to assist if requested by City Animal Control personnel. 8) The County agrees to approve any call out by the Sheriff and/or his designate. (on duty deputy) City Council Packet October 14, 2008 41 9) The County agrees to approve all private impounded animals. 10) The County agrees to reimburse the City on any unclaimed impoundments. (based on five day hold and $60 fee) 11) The County agrees to reimburse the City at a minimum of 2 hours per call at $25 per hour plus mileage at the IRS rate. 12) Note live traps can be picked up by a county resident with a deposit with the City. The county resident is responsible for disposal of animal. This agreement will take effect on the 1st day of August, 2008, and shall remain in force until terminated. Either party may cancel this agreement upon providing thirty (30) days written notice of the intention of cancellation. E. Action to appoint Mayor Munsterman and Deputy Mayor Reed to a BEDC Community Task Force for a Continuum of Care Plan for the City of Brookings. On the motion, all present voted yes; motion carried. First Reading – Ordinance No. 37-08: Sidewalk Sales. A first reading was held on Ordinance No. 37-08, an ordinance providing for the sale and consumption of alcoholic beverages upon property adjoining a licensed premises in the City of Brookings, South Dakota (Sidewalk Sales). Public Hearing: September 23rd First Reading – Ordinance No. 36-08 A first reading was held on Ordinance No. 36-08, an ordinance amending and revising various building, property maintenance and nuisance ordinances of the City of Brookings, South Dakota. Public Hearing: September 23rd Resolution No. 69-08: Wine Operating Agreement. A motion was made by Bartley, seconded by Brunner, to approve Resolution No. 69-08, authorizing the City Manager to enter into a Wine Operating Agreement for Halstead’s Natural Bakery & Restaurant, LLC., 417 Main Avenue, Zach Halstead, owner. All present voted yes; motion carried. Resolution No. 69-08 Halstead’s Natural Bakery & Restaurant, LLC Wine Operating Agreement BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for Wine between the City of Brookings and the Halstead’s Natural Bakery & Restaurant, LLC for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 417 Main Avenue. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. On-Sale Malt License: Halstead’s A motion was made by Reed, seconded by Brunner, to approve an On-Sale Malt license for Halstead’s Natural Bakery & Restaurant, LLC., 417 Main Avenue, Zach Halstead, owner. All present voted yes; motion carried. City Council Packet October 14, 2008 42 2nd Reading – Ordinance No. 33-08: 2009 Budget. A motion was made by Reed, seconded by Bartley, to approve Ordinance No. 33-08, 2009 Budget Ordinance, an Ordinance appropriating Monies to Fund the necessary expenditures and liabilities of the City of Brookings for the 2009 Fiscal Year and providing for the annual tax levy and annual tax for all funds. Discussion: The City Council commended Weldon on a smooth and successful budget process that was easy to understand and better than any seen by previous councils. All present voted yes; motion carried. 2nd Reading – Ordinance No. 32-08: Animal Control Amendments. A motion was made by Reed, seconded by Brunner, to approve Ordinance No. 32-08, an Ordinance Amending Chapter 14 of the Ordinances of the City of Brookings and pertaining to the Regulation of Animals in the City of Brookings, South Dakota, with one change to the document increasing the number of pets from four to six that are allowed per household. All present voted yes; motion carried. Public Hearing – Ordinance No. 34-08: Rezoning. A public hearing was held on Ordinance No. 34-08, an Ordinance rezoning Lots 3, 4, and 5, Block 1 and Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District and for approval of an initial and final development plan. Hearing: Suzanne Hegg, Museum Director, said the purpose of the Children’s Museum of South Dakota is to promote learning for children of all ages and abilities through interactive, informal, hands- on exhibits and demonstrations. The museum will be a welcoming, fun, and entertaining environment which will help spark learning through imagination, creativity, and discovery. Exhibits, both inside and outside, will be broad-based to include subjects in science, engineering, art, literature, culture, geography, and history. It will be a place that relates to its region, its community, its children, and their learning wants and needs. It will be a place where children and adults learn through play. The goal of the Children’s Museum of South Dakota is to be an exceptionally fun and fascinating place for interactive learning for families, a supportive partner to all schools in the region, a regional destination and attraction, an ongoing asset to the city of Brookings, a downtown gathering place for all, and a marketing partner with other attractions in Brookings. A motion was made by Brunner, seconded by Reed, to approve Ordinance No. 34-08. All present voted yes; motion carried. Public Hearing – Ordinance No. 35-08: Rezoning. A public hearing was held on Ordinance No. 35-08, an Ordinance rezoning Lot 101, Block 1, First Addition from a Residence R-2 District to a Planned Development District and for approval of an initial and final development plan. A motion was made by Reed, seconded by Whaley, to approve Ordinance No. 35-08. All present voted yes; motion carried. TID #4 Project Plan. A motion was made by Brunner, seconded by Reed, to approve the PROJECT PLAN for Tax Increment Plan for Tax Increment District Number Four (TID #4). City Council Packet October 14, 2008 43 All present voted yes; motion carried. A complete copy of the project plan is available for public viewing in the City Clerk’s Office at City Hall. John Mills objected to the Council’s passage of the TID without having any policies in place. He felt all the developers should compete by the same rules. He has concerns with the use of TIDs. These are a new economic development tool and new to Brookings. His concern is with unequal application and allocation of TIDs. He is afraid the Council and city are going down a road that applies in a checkerboard fashion with advantages to some buyers and a group of developers over others. He apologized for not being at the Council meeting when the Valley View project was discussed. He was surprised it was approved. He asked the Council to take a step back and review what the real implications are of a TID. He’s not speaking in favor or opposed to any specific project, but the overall use of this new economic development tool without further research and encouraged the rules apply to all and play on same course or apply to none. Weldon agreed that tax increment financing is a controversial tool in most communities. Developers are using TIDs as a tool to help bring down costs of what might be otherwise near prohibitive costs to development and construction. That is not the case for $200,000+ homes. Those are homes that make sense financially to recover costs. The problem is homes in that price range may be out of reach for many in our community. In order to have a diverse community, affordability of homes is important as well. One tool to address lower cost homes are tax incremental districts for housing in a targeted approach. The State requires careful and selective use of TIDs. (ADDITION) Resolution No. 77-08, TIDD District #4. A motion was made by Bartley, seconded by Brunner, to approve Resolution No. 77-08, a Resolution providing for the creation of Tax Incremental District Number Four in the City of Brookings. All present voted yes; motion carried. Resolution No. 77-08 Resolution Providing For The Creation Of Tax Incremental District Number Four City Of Brookings WHEREAS, the Planning Commission has recommended the District Boundaries for Tax Incremental District Number Four, City of Brookings, and has recommended its creation; and WHEREAS, the City of Brookings has the powers, pursuant to SDCL 11-9-2, to create Tax Incremental District Number Four, City of Brookings, and to define its boundaries. NOW THEREFORE, IT IS HEREBY RESOLVED: 1. Authority and Declaration of Necessity. The City of Brookings declares the necessity for the creation of Tax Incremental District Number Four, City of Brookings (hereinafter sometimes referred to as the “District”), pursuant to SDCL Chapter 11-9. Further, the City finds that the improvement of the area within the District is likely to enhance significantly the value of substantially all of the other real property in the District and is necessary for economic development within the City by the construction of affordable housing within the City. City Council Packet October 14, 2008 44 2. Findings of Blight. The City Council makes the following findings with regard to blight: a. More than 25% of the property in the District is a blighted area; b. Improvements to the District will significantly and substantially enhance the value of all property within the District; c. There is a reasonable likelihood that there will be affordable housing built within the District. d. The aggregate assessed value of the District plus the tax incremental base of all other existing Districts in the city does not exceed Ten (10%) percent of the total assessed valuation in the City. e. The District is predominantly open bare land void of site improvements, that impairs the sound growth of the City. f. The District also lacks drinking water connections and fire safety systems in the areas of unimproved land which creates an unsafe condition and substantially impairs the sound growth of the District. g. There exist inadequate street layouts which retard the provision of housing accommodations. h. The District lacks sewerage connections in many areas which substantially limits the sound growth of the District. i. Paragraphs f through i substantially impair the growth of the City, retards housing accommodation and is a menace to the welfare of the City in its present condition. j. The District constitutes a blighted area as defined in SDCL Chapter 11-9. 3. Findings of Maximum Percentage of Tax Incremental Districts. The aggregate assessed value of the taxable property in the District, plus all other tax incremental districts, does not exceed Ten (10%) percent of the total assessed valuation of the City of Brookings. 4. Creation of District. There is hereby created, pursuant to SDCL Chapter 11-9, Tax Incremental District Number Four, City of Brookings. The District is hereby created on the day this Resolution becomes effective, which shall be twenty days after publication of this Resolution. 5. Designation of District boundaries. The District shall be located with the northern, southern, western and eastern boundaries of the following described real property: The East 610 Feet of the West 1,110 Feet of the South 640 Feet of the North 1,150 Feet in the SE ¼ of Section 35-T110N-R50W (unplatted land north of Cardinal Drive in Hunter’s Ridge Addition. 6. Creation of Tax Incremental Fund. There is hereby created, pursuant to SDCL 11-9- 31, a City of Brookings Tax Incremental District Number Four Fund, which shall be a segregated asset account. All tax increments collected pursuant to Tax Incremental District Number Four shall be deposited into the Tax Incremental District Number Four Fund. All funds in the Tax Incremental District Number Four Fund shall be used City Council Packet October 14, 2008 45 solely for those purposes expressly stated and reasonably inferred in SDCL Chapter 11-9. (ADDITION) Resolution No. 78-08 – TIDD #4. A motion was made by Bartley, seconded by Reed, to approve Resolution No. 78-08, a Resolution Giving Approval To Tax Increment District Number Four Project, Giving Approval To The Issuance Of Tax Incremental Revenue Bonds To Finance The Project And Authorizing The Sale Of Said Tax Incremental Revenue Bonds And The Terms Thereof. All present voted yes; motion carried. Resolution No. 78-08 Resolution Giving Approval To Tax Increment District Number Four Project, Giving Approval To The Issuance Of Tax Incremental Revenue Bonds To Finance The Project And Authorizing The Sale Of Said Tax Incremental Revenue Bonds And The Terms Thereof. NOW, THEREFORE, BE IT RESOLVED AND RESOLVED by the City of Brookings as follows: SECTION 1. AUTHORITY, FINDINGS, AUTHORIZATION. 1.01 Authority. The City is authorized to issue its Tax Incremental Revenue Bonds, Series 2008 to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act"), the City proposes to issue tax incremental revenue bonds (as herein authorized, the “Tax Incremental Revenue Bonds” or the "Bonds") to finance a portion of the Project costs. The City is authorized by the Tax Incremental Act to pledge a special fund into which the City will deposit the tax increment (as defined by the Act). 1.02 Findings. The City Council hereby finds and determines as follows: (a) It is necessary to provide incentives for the development of certain real property located in the City for affordable housing; (b) The City intends to provide financing of Sieler Housing Development which will be constructed to meet the needs of low to moderate income families located in the City of Brookings in connection with Tax Increment District Four the plan on file with the City Finance Officer and open to public inspection (the "Project"); (c) The Tax Incremental Revenue Bonds authorized hereby are being issued to pay costs of Project, which have not been incurred or paid as of the date hereof and/or which the City has heretofore declared its intention to finance with bond proceeds and for which the City has no other available means or source of financing. The cost of the Project will not exceed $475,000, including capitalized interest; (d) It is in the best interests of the City to authorize the borrowing of funds to pay a portion of the costs of the Project by authorizing and issuing the Bonds, consistent with the terms approved hereby for an aggregate sum not in excess of the amount of $475,000; and (e) That the Tax Incremental Revenue Bonds are payable only solely out of the special fund created herein and that it does not constitute a general indebtedness of the City or a charge against its general taxing power. City Council Packet October 14, 2008 46 1.03 Authorization to issue the Bonds. It is hereby determined to be necessary and in the best interests of the City and its inhabitants that this City Council authorize, issue and sell the Bonds (the “Bonds”) in order to finance a portion of the cost of the Project. The Mayor, City Manager and City Finance officer are authorized to negotiate the sale and terms of the Bonds subject to the limitations of the law and this Resolution. The Bonds may be issued by the City without an election pursuant to SDCL §11-9-34. SECTION 2. SALE, BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT. 2.01 Sale. The Bonds authorized by this Resolution shall be issued in an aggregate principal amount not exceeding $475,000 and shall be privately placed due to the unique nature. The Bonds will bear interest at a rate or rates per annum and will mature over a period set forth in the bond purchase agreement or similar document. The City intends to sell the Bonds to a local or regional financial institution, underwriters or private individual or individuals (the "Purchaser"). 2.02 Bond Purchase Agreement. The execution of a bond purchase agreement or similar document setting forth the final terms of the Bonds is hereby approved and authorized. The execution of said document by the Mayor and City Finance officer shall be conclusive evidence of such agreement and shall be binding upon the City. SECTION 3. TERMS OF BONDS. 3.01 Date, Amount, Maturities and Interest Rates. The Bonds shall be dated in calendar year 2008. The principal amount of the Bonds shall not exceed the lesser of $475,000 or any statutory or constitutional debt limitation. The term of the Bonds shall not exceed 20 years. The weighted average interest rate on the Bonds shall not exceed 8.00%. 3.02 Form of Bonds. The Bonds shall be prepared in substantially the form on file with the City Finance officer and open to public inspection. 3.03 Execution. The Bonds shall be signed by the manual or facsimile signatures of the Mayor and City Finance officer of the City and countersigned by the manual or facsimile signature of an attorney resident in the State of South Dakota and in case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. 3.04 Redemption. Terms of optional or mandatory redemption shall be set by negotiation with the purchaser of the Bonds. (i) Appointment of Initial Registrar. The City hereby appoints the Finance officer, as Bond registrar, transfer agent and paying agent (the "Registrar") for the Bonds. 3.05 Authentication and Delivery. No Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the Registrar by the manual signature of its authorized representative. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond City Council Packet October 14, 2008 47 shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Finance officer shall deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the provisions of the Bond Purchase Agreement and the Purchaser shall not be obligated to see to the application of the purchase price. Upon delivery of the Bonds to the Purchaser, the City Finance Officer shall file with the Secretary of State, on the form provided by the Secretary of State, the information required by SDCL, Section 6-8B-19. SECTION 4. SECURITY PROVISIONS; FUNDS AND ACCOUNTS AND OTHER COVENANTS AND DETERMINATIONS. 4.01 Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax Increments. All Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund. The Tax Increment is irrevocably pledged and appropriated to the payment of the Bonds. For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or hereafter issued pursuant to this Resolution. The Tax Incremental Revenue Bond Fund shall be used and applied only in the manner and order hereinafter set forth. The holders of the Outstanding Bonds shall have a lien against the Tax Incremental Revenue Bond Fund for payment of the principal and interest and may either at law or in equity protect and enforce the lien. 4.02 Tax Incremental Revenue Bond Fund. The City Finance officer is hereby authorized and directed to establish and shall maintain a special fund, the Tax Incremental Revenue Bond Fund, as a separate and special fund in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Tax Increments shall be credited, as received, to the Tax Incremental Revenue Bond Fund. Within the Tax Incremental Revenue Bond Fund are various separate accounts to be maintained by the City. (a) Construction Account. There is hereby created and established as an account of the Tax Incremental Revenue Bond Fund, a "Construction Account". There shall be credited to the Construction Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds. All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Project or reimbursement therefore. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of capitalized interest, labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project. All sums derived from the investment of moneys in the Construction Account shall remain in and become part of such account. Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Construction Account shall be credited to the Principal and Interest Account hereinafter established. All public project costs shall be bid in accordance with South Dakota law. (b) Principal and interest Account. There is hereby created and established as an account of the Tax Incremental Revenue Bond Fund, a "Principal and Interest Account." Immediately upon delivery of the Bonds, there shall be credited to the Principal and City Council Packet October 14, 2008 48 Interest Account the amount of any accrued interest received from the Purchaser. Periodically, as needed there shall be withdrawn from the Tax Incremental Revenue Bond Fund and credited to the Principal and Interest Account an amount which will equal at least the next principal and interest payment. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due. (c) Subordinate Lien Bonds. After making the above required payments, any remaining Tax Increment shall be used for the payment of the principal of and interest on any additional Tax Incremental Revenue Bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds. 4.03 Additional Debt. (a) No additional Bonds shall be issued, be made payable from the Tax Incremental Revenue Fund or Tax Increments which is prior to or superior to the lien of the Bonds authorized herein. (b) Nothing in this Resolution shall be construed in such manner as to prevent the issuance by the City of additional bonds payable from the Tax Increment and constituting a lien upon the Tax Increment and the Tax Incremental Revenue Fund equal to or on a parity with the lien of the Bonds authorized herein (such additional bonds being referred to herein as "Additional Bonds"), provided that it is feasible and the Bond Holder agrees in writing. (c) Nothing herein shall prevent the City from issuing Bonds payable from the Tax Increment or Tax Incremental Revenue Bond fund or having a lien thereon which is junior and subordinate to the lien of the Bonds authorized herein. The City may incur expenses in connection with the Tax Incremental District Number Four which shall be reimbursed through the tax increment. Said obligations shall be junior and subordinate to the Bonds whether evidenced by an accounting notation or instrument of indebtedness. 4.04 Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the State of South Dakota does pledge to and agree with the holders of any issued under 11-9 that the state will not alter the rights vested in the bond holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. 4.05 Covenants of the City. The City hereby irrevocably covenants and agrees with each and every holder of the Bonds that so long as any of the Bonds remain outstanding: (a) It will not amend or repeal the Tax Increment or the allocation of revenues thereof to the Tax Incremental Revenue Bond Fund, or in any way that would adversely affect the amount of Tax Incremental Revenues which would otherwise be collected and deposited to the Tax Incremental Revenue Bond Fund. (b) It will administer, enforce, and collect, or cause to be administered, enforced or collected, the real property taxes and shall take such necessary action to collect delinquent payments in accordance with law. City Council Packet October 14, 2008 49 (c) It will keep or cause to be kept such books and records showing the proceeds of the Tax Incremental, in which complete entries shall be made in accordance with standard principles of accounting, and any owner of any Bond shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such Tax Incremental. (d) In the event the real property taxes of the City is replaced and superseded by the state collected-locally shared tax or taxes, or is replaced and superseded in some other manner form other source or sources, the revenues derived by the City from the replacement source or sources, as received by the City shall be appropriated in the same manner as if the City had levied and imposed a real property tax. From and after the date of a replacement, the Outstanding Bonds shall have a first and prior lien, but not necessarily an exclusive lien, upon such replacement revenues to the extent therein specified. 4.06 Defeasance. When all the Bonds issued have been discharged as provided in this section, all pledges, covenants, and other rights granted by this Resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by providing to the Paying Agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its liability with reference to all Bonds which are called for redemption on any date in accordance with their terms by depositing funds with the Paying Agent on or before that date in accordance with their terms by depositing funds with the Paying Agent on or before that date, in an amount equal to the principal, interest, and premium, if any, which are then due thereon, provided that notice of such redemption has been duly given. The City may also at any time discharge this issue of Bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or United States government obligations which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been duly called for redemption, on or before the designated redemption date. 4.07 Certification of Proceedings. The officers of the City are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the correctness of the facts recited therein and the action stated therein to have been taken. SECTION 5. TAX MATTERS; CERTIFICATION OF PROCEEDINGS AND MISCELLANEOUS. City Council Packet October 14, 2008 50 5.01 Tax Matters. The interest component on the Bonds shall be taxable. SECTION 6. INTERPRETATION, AUTHORIZATION OF OFFICERS AND RESOLUTION CONSTITUTES CONTRACT. 6.01 Interpretation. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. 6.02 Authorization of Officers. The Mayor, officers of the City and the City Finance Officer of Brookings are authorized and directed to prepare and furnish to the purchasers of said Bonds, and to the attorneys passing on the legality of said Bond issue, copies of all proceedings relating to Bonds and other certificates and affidavits showing the facts affecting the legality thereof as shown by the books and records of the City under their custody and control or as otherwise known to them and such copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the facts therein recited. 6.03 The officers of the City are hereby authorized and directed to take all other action necessary or appropriate to effectuate the provisions of this Resolution , including without limiting the generality of the foregoing, the printing of the Bonds, and the execution of such certificates as may reasonably be required by the Purchaser, including, without limitation, certification relating to the signing of the Bonds, the tenure and identity of the City's officials, the exemption of interest on the Bonds from federal income taxation, the receipt of the Bond purchase price and, if in accordance with the facts, the absence of litigation affecting the validity thereof. 6.04 Resolution Constitutes Contract. After the Bonds have been issued, this Resolution shall constitute a contract between the City and the holder or holders of the Bonds, and shall be and remain irrepealable and unalterable until the Bonds and the interest accruing thereon shall have been duly paid, satisfied and discharged. 6.05 Rules of Construction. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution. The title or caption of each paragraph are for convenience purposes only and do not define scope or intent of paragraph. Den-Wil Tax Increment Assistance Request. Weldon provided the following report to the City Council and public: “The City has received a request to use tax increment expenditures for public improvements within Tax Increment District #1 associated with the Den-Wil mixed use project. TID #1 was established by the City in 2007 and includes the SDSU Innovation Campus as well as substantial amount of developed and undeveloped property south toward 6th Street. (See attached map of TID #1) The increment requested would be generated by the increase in property value from the Den-Wil project. The stated public purpose of the creation of this tax increment district was to pay for infrastructure improvements of the SDSU Innovation Campus. It was anticipated increment would be generated from new development both inside and outside the Innovation Campus. City Council Packet October 14, 2008 51 The purpose of this memo is to provide background information and to suggest a “conceptual” solution in order to keep the project progressing. Final approval is not contemplated with this memo. Details need further analysis but the developer and staff are asking the Council for some policy direction on some aspects of this project so resources can be expended wisely in accordance with your policy directives. The following discussion provides information about the project and related issues as a means of working toward a final resolution that will accomplish the private and public goals of this project. Description of Den-Wil Project: The project is McCrory Village, a mixed use residential and commercial located just south of the Innovation Campus on the north side of 10th Street between 22nd Avenue and the proposed right-of-way for the future 25th Avenue. The legal description is Lot 6, Block 1, Telkamp Addition. A plat map is attached. Phase I includes a three story structure with 120+ upscale apartments on three floors and approximately 5,000 square feet of commercial space on the first floor. The property is being re-zoned for this intended use. Phase II will be directly across the street on the south side of 10th Street and would be built at a time yet to be determined. Phase II is envisioned as additional mixed use for residential and commercial use but with a higher percentage dedicated to retail use. The developer has installed utilities in 10th Street and needs to yet install the street, curb and gutter easterly to the end of their property. The estimated construction cost of the Phase I building is $10.1 million. Other needed improvements: In order for the project to be complete, there are several other improvements that need to be undertaken. In addition to the street completion of 10th Street which the developer is doing, the right-of-way for future 25th Avenue needs to be dedicated from 9th Street to the SDSU Innovation Campus. Where 25th intersects with 10th, we are envisioning a continuous street. Where 25th north of 10th goes to the Innovation Campus, this right-of-way would be for emergency vehicles, possibly delivery vehicles, but primarily it would be a pedestrian/bicycle “plaza” connecting McCrory Village and existing commercial and residential development to the south with the Innovation Campus. This dedicated right-of-way for 25th Avenue is a component of the City’s master street plan and would be advantageous to encouraging development on the remaining 25 acres of farmland east of this area to Interstate 29 right-of-way. Other associated improvements would be the installation of water, sanitary sewer, storm drainage, street surface, curb and gutter, streetlights, sidewalks, landscaping, and signage on 10th Street and 25th Avenue from 9th Street to the Innovation Campus. Estimated costs of public improvements: The following are estimated costs of the needed public improvements that could be financed by tax increment generated from this project if the Council so desires. Please be advised that any increment spent on these described improvements diminishes the amount of increment available for infrastructure in the Innovation Campus. That price tag for completing Phases II-IV is $3.8 million in today’s dollars for the Innovation Campus. Phase I is currently under construction and is being financed by the Growth Partnership. He provided preliminary cost estimates for discussion only: Acquisition of right-of-way for future 25th Avenue ($383,737), Installation of infrastructure in 25th, connection to 10th ($300,000), Lighting City Council Packet October 14, 2008 52 ($175,000), Landscaping ($100,000), Sidewalks, pedestrian ‘plaza’ to Innovation Campus ($120,000) for a total of $1,078,737. Increment generated by McCrory Village project: As the above list constitutes the “uses” of revenue, the “sources” of revenue is the amount of tax increment generated by this project that could be available to pay for them. According to the developer’s financial advisor, after the discretionary formula is applied to the property taxes, Phase I will generate $118,495 annually to service this debt. If the project begins construction immediately, the first increment will not be available until 2011 and this full amount ($118,495) will not be available until 2014 because of the discretionary formula. This calculation, however, has not yet been independently verified by City’s financial advisor, which will have to be done. Financing of the improvements: Since the improvements will need to be installed at the beginning of the project, and since tax increment is available in annual payments over time, the City will need to finance these costs up-front either through cash or the issuance of debt. Annual increment generated through new tax growth will be used to retire the debt or repay the cash outlay. Diversion of use of increment: As you know, TID #1 was established for the purpose of generating increment to pay for infrastructure in the Innovation Campus. Phase I is being financed by the Growth Partnership but Goal #3 from the City’s Strategic Plan is to finance the subsequent infrastructure phases for the Innovation Campus. The TID district was intentionally made larger than the boundaries of the Innovation Campus for the explicit purpose of capturing increment over a larger area to help accelerate the available increment to pay for the infrastructure. In a memo to you dated June 3, 2008, I outlined the specifics of the financing plan we are proceeding with as a means of executing this goal. That memo also predicted a private development may wish to use generated increment to pay for associated public improvements. McCrory Village is that project. A policy decision will need to be made as to how much increment you wish to divert from the Innovation Campus infrastructure to pay for infrastructure associated with 25th Avenue and 10th Street for the proposed McCrory Village project. I believe a strong case can be made for using some of the increment for the McCrory Village project as opposed the Innovation Campus infrastructure. First, McCrory Village is an imminent project that could help “jump-start” private development in the Innovation Campus which is more long-range. Second, it will also address a housing goal for this style of apartments as identified in our housing plan. Third, it will encourage retail development in areas on both sides of 25th Avenue and 10th Street. Fourth, it completes a goal of installing 25th Avenue as a major street transportation system identified in our master plan. What’s more, any new development that occurs in the district generates more increment that can be used toward the Innovation Campus infrastructure. Project plan needs to be prepared: Tax Increment District #1 needs to have a project plan written and filed with the state and county. The last official action taken was the establishment of the district. The project plan needs to delineate the work to be completed with the generated increment. As a reminder, the infrastructure must be completed within five years of certification of the district and in accordance with the project plan but increment can be captured for 20 years. City Council Packet October 14, 2008 53 “Remnant” outlot created by street alignment: To complicate the issue further, the alignment of the proposed North 25th Avenue as it enters the Innovation Campus creates an outlot .94 acre in size between the right-of-way for this street and the east edge of the McCrory Village project. As a condition of dedicating the right-of-way, the owner wants to sell this lot. We have an interest in acquiring approximately one-third of this parcel as BMU-Swiftel would like to locate a switch building at this location. The balance of the lot remains available for a small commercial development, parking, or open space. At the time of writing this memo, a price has not yet been established by the owner. Analysis of expenditures financed by TIF proceeds: While the above itemized cost estimates totaling $1,078,737 are permitted as TIF expenditures under state law, the question becomes how much does the City was to use for this project that would not go toward the Innovation Campus; and which of these items the City desires to finance. The primary item of concern is the purchase of right-of-way for the future 25th Avenue. As a matter of policy, the City has required developers to dedicate the necessary right-of-way for their respective project and has not purchased it. The reason being is that such right-of-way is necessary for the success of the project and ultimately benefits the project. This is the position I put forth to the developer and have advocated a position the City not pay for the right-of- way associated with the extension of 10th Street and 25th Avenue South to connect to 9th Street. However, I did suggest that City may be interested in purchasing the area associated with 25th Avenue NORTH of 10th Street as the connection to the Innovation Campus. Since this corridor would also serve as a pedestrian and bikeway connection to the Innovation Campus, I suggested the City may wish to consider purchasing this parcel, again depending upon the price. Related to this is, of course, the “outlot” parcel described above. Since BMU-Swiftel is interested in a small piece of this parcel, and the balance could be re-sold, the final dispensation of this parcel is problematic and its resolution needs to be part of the solution. The other expenses are all public improvements and I would suggest they be financed all or in part with increment. If the City does not use increment for the right-of-way acquisition for 25th Street as listed above, and does use increment to finance the other improvements, the cost drops to $695,000 plus a yet-to-be determined amount for the all or any portion of the outlot and the area north for the connection to the Innovation Campus. Possible solution to the right-of-way acquisition cost: The developer has suggested a financing mechanism called “cost recovery” for the right-of-way. This method provides for the developer paying the cost of right-of-way acquisition for 25th Avenue between 9th and 10th, as well as the extension of 10th, and then filing a “cost recovery” against adjacent, benefiting property owners. When said property develops, that new project developer will reimburse the original developer the pro rata share of the cost as measured against the benefitting parcel; generally on a linear foot basis. It is basically a system of allowing a private party to assess their neighbor for improvements and provides for equity to property that benefits from shared infrastructure when development is expected to occur at different times. This is permitted under SDCL 9-43 to 9-49. Policy considerations: The policy questions before us are: 1) Does the City want to use any increment for the McCrory Village project? City Council Packet October 14, 2008 54 2) If yes, to what level and for what expenditures? 3) At what financial level is the City interested in using TIF proceeds to acquire the outlot parcel and the connection lot to the Innovation Campus knowing some of this has value to BMU- Swiftel; and the balance could be re-sold? Obviously, the answers to these questions are somewhat dependent upon how much increment is generated to pay for them which is projected above but needs more analysis for a quantitative answer.” Weldon requested policy direction from the City Council as to conceptual support for this proposal. Dennis Bielfeldt, project developer, said he was very excited about the innovation village and its link to the innovation campus. As a professor at SDSU, he loves ideas and research and is particularly excited about building a research campus. He is working closely with Teresa McKnight, Innovation Campus Director, on the project. His project would be upscale with an indoor pool, underground heating parking, wash bays, corporate suites, guest suites and a state of the art business center. In addition, the lower level would include 5,500 square fee of retail space. He said he believes in Brookings and the future of SDSU. This is not a cheap project. Estimated cost is $12 million. He has the opportunity to acquire additional land that will enhance the project. However, acquiring land isn’t cheap and isn’t something he can do on his own. He said he is asking for a conceptual buy-in from the Council on the development and a TID. He will need the Council’s support and partnership on this long-term project. He can’t do all of it on his own; buying all the land and dedicating right-of-way. He said utilizing the innovation campus TID will take some money out of the campus at the beginning but will build south to generate revenue. He noted that the City is already 1 ½ years into the 5 year TID. ACTION: A motion was made by Bartley, seconded by Reed, to direct the city manager to continue to work with the developers and land owners to come up with a plan that will work with the original intent of the TID district and that intent is preserved. All present voted yes; motion carried. (ADDITION) Event Types in Public Facilities. Bezdichek requested the Council review the types of events held in public facilities. He said he specifically has a problem with an upcoming event at the Swiftel Center related to cage fighting. He is opposed to any future uses that are similar and would take steps to cut funding to the center if it occurs again. A motion was by Reed, seconded by Bezdichek, that the City Council review event types that can be held at the Swiftel Center at a future Council work session. All present voted yes; motion carried. TABLED Resolution No. 67-08 – Real Property Transfer. A motion was made by Brunner, seconded by Whaley, to remove from the table Resolution No. 67-08. All present voted yes; motion carried. A motion was made by Bartley, seconded by Reed, to approve Resolution No. 67-08, a Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development Corporation, Inc. For Economic Development Purposes. All present voted yes; motion carried. City Council Packet October 14, 2008 55 RESOLUTION NO. 67-08 A Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development Corporation, Inc. For Economic Development Purposes BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows: WHEREAS, the Brookings Economic Development Corporation, Inc. desires to purchase two parcels of real property, one approximately 6 acres and a second approximately 7 acres, located in Telkamp Addition or the Freeland Addition to the City of Brookings, South Dakota, for the price of zero dollars ($0) per acre, and WHEREAS, for the express purpose of furthering economic growth and development of the City of Brookings, South Dakota the Brookings Economic Development Corporation, Inc. agrees to sell, convey or otherwise transfer said property to a legal entity which is, or will be, conducting business in the City of Brookings, South Dakota, and WHEREAS, it is in the best interests of the City of Brookings that the City provide its economic development assistance in this matter to aid and assist with the completion of the aforesaid transaction which will further economic development in the City of Brookings; and WHEREAS, the City is authorized to enter into this transaction as an economic development activity under the laws of the State of South Dakota; NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: A. That the City convey title to the above-described property to the Brookings Economic Development Corporation, Inc. for the purposes of furthering economic growth and development of the City of Brookings, South Dakota; and B. That the Mayor, City Clerk and City Manager are authorized to execute the required documents in accordance with this Resolution. Adjourn. A motion was made by Whaley, seconded by Reed, to adjourn. All present voted yes; motion carried. Meeting adjourned at 8:02 p.m. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 56 Brookings City Council September 23, 2008 (unapproved) The Brookings City Council held a meeting on Tuesday, September 23, 2008 at 6:00 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Julie Whaley, Mike Bartley, Ryan Brunner, Tim Reed, Mike McClemans, and Tom Bezdichek. Acting City Manager Jackie Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. 6:00 P.M. CITY COUNCIL MEETING Consent Agenda: Resolution No. 80-08 and Resolution No. 83-08 were removed from the consent agenda for further discussion. A motion was made by Reed, seconded by Whaley, to approve the agenda, which included: A. Action to approve the agenda as amended. B. Action on Resolution No. 79-08, awarding bids for the 2008-123 Subdivision Utilities and Grading Project (for Sieler Addition, Cardinal Drive and Remington). Resolution No. 79-08 Resolution Awarding Bids on Project 2008-123STI Sieler Addition Subdivision Utilities & Grading Project Whereas, the City of Brookings opened bids for Project 2008-123STI Sieler Addition Subdivision Utilities & Grading Project on Tuesday, September 16, 2008 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2008-123STI Sieler Subdivision Utilities & Grading Project: Schedule A (Grading): Clark Drew Construction Co., Brookings, SD $317,329.50 Bowes Construction, Inc. Brookings, SD $323,948.57 Rounds Construction Co., Inc., Brookings, SD $330,185.24 Alternate A-1(Asphalt Pavement): Clark Drew Construction Co., Brookings, SD $61,867.98 Bowes Construction, Inc. Brookings, SD $61,867.98 Schedule B (Utilities): VJ Ahlers Excavating, Inc., Brookings, SD $101,383.44 Prunty Construction Co., Inc., Brookings, SD $103,493.20 Runge Enterprises, Inc., Sioux Falls, SD $119,123.09 Unerground Developers, Inc., Sioux Falls, SD $119,625.93 Now Therefore, Be It Resolved that the low bid of Clark Drew Construction, Co, Brookings, SD for Schedule A (Grading) of $317,329.50 with the bid Alternate A-1 (Asphalt Pavement) of Clark Drew Construction Co. of $61,867.98 be accepted; and that the low bid of VJ Ahlers Excavating, Inc., Brookings, SD for Schedule B (Utilities) $101,383.44 be accepted. C. Action on Resolution No. 80-08, awarding bids for the 2008-10SSI Timberline Detention Pond Grading Project. (REMOVED FROM CONSENT). City Council Packet October 14, 2008 57 D. Action on Resolution No. 81-08, authorizing the City Manager to sign a Wine Operating Agreement renewal with Guadalajara’s. Resolution No. 81-08 Guadalajara’s Wine Operating Agreement BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for Wine between the City of Brookings and the Guadalajara’s for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at Village Square Mall #1. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. E. Action to cancel the November 11th council meeting. F. Action on Resolution No. 82-08, a Resolution authorizing Change Order (CCO#1 Final) for 2008 purchase of concrete sand for Edgebrook Executive Nine Greensoil Mix, Contract Date August 12, 2008 to L.G. Everist, Inc., Brookings, SD. Resolution No. 82-08 A Resolution authorizing Change Order (CCO#1 Final) for 2008 purchase of Concrete Sand for Edgebrook Executive Nine Greensoil Mix, contract date August 12, 2008 to L.G. Everist, Inc., Brookings, SD. ORIGINAL CONTRACT BID PRICE: 900 ton concrete sand @ $7.50 per ton=$6,750.00. ACTUAL QUANTITY PURCHASED: 891.98 ton concrete sand @ $7.50 per ton= $6,689.85. REDUCTION TO CONTRACT: $60.15. BE IT RESOLVED by the City Council that the following Change Order be allowed for purchase of concrete sand: CCO Number 1 (Final) – Adjust contract with a reduction of $60.15 G. Action on Resolution No. 83-08, A Resolution Concurring in the Placement of Stop Signs at the Intersection of 8th Street and 13th Avenue. (REMOVED FROM CONSENT). On the motion, all present voted yes; motion carried. Resolution No. 80-08- Bids. A motion was made by Bartley, seconded by Reed, to approve Resolution No. 80-08, awarding bids for the 2008-10SSI Timberline Detention Pond Grading Project and to direct the City Manager and City Attorney to further investigate the punch list to see how much of the costs are due form the developer and proceed forward with cost recovery measures. Discussion: Whaley asked if the developer would participate in any of the costs for the low bid. Lanning said the city purchased the lots with the understanding that the work would be performed on the three lots purchased. The city also identified other work it felt was needed which would require bidding out the job. The City will pay for this project out from drainage fee funds. Whaley questioned if any of the expenses would be covered by the developer. Lanning noted there has been a debate regarding completion of all projects; however, the city felt it was their responsibility as the owner of the pond to complete the work for the residents in the area. Britzman commented that there are remaining unresolved issues, but recommended the city proceed with this project to accomplish the work and do a cost recovery measures at a later date. All present voted yes; motion carried. City Council Packet October 14, 2008 58 Resolution No. 80-08 Resolution Awarding Bids on Project 2008-10SSI Timberline Detention Pond Project Whereas, the City of Brookings opened bids for Project 2008-10SSI Timberline Detention Pond Project on Tuesday, September 16, 2008 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2008-10SSI Timberline Detention Pond Project: Bowes Construction, Brookings, SD $51,905.54 Prussman Contracting, Inc., Brookings, SD $74,685.95 Rounds Construction Company, Inc., Brookings, SD $119,141.90 Now Therefore, Be It Resolved that the low bid of Bowes Construction, Inc. for $51,905.54 be accepted. Resolution No. 83-08 – Stop Signs. A motion was made by Reed, seconded by McClemans, to approve Resolution No. 83-08, A Resolution Concurring in the Placement of Stop Signs at the Intersection of 8th Street and 13th Avenue. Discussion: Whaley expressed concern about the process and felt the Traffic Safety Committee should have been involved with SDSU’s pedestrian plan from the beginning. She noted that there are significant costs related to signs and including initial purchase, ongoing maintenance and replacement, particularly in that area due to theft, and questioned if SDSU would participate in the costs. Lanning said the city hadn’t discussed cost sharing with SDSU and these two parcels are within the right-of-way of the City; however, the City could work with the university on cost recovery. Resolution No. 83-08 Concurring in the Placement of Stop Signs at the intersection of 8th Street and 13th Avenue WHEREAS, Section 82-373 of the Revised Ordinance of the City of Brookings, provides for approval by the City Council for placement of stop signs in locations other than along through streets. NOW, THEREFORE, BE IT RESOLVED that the City Council concurs in the recommendation of the Traffic Safety Committee and the City Manager and approves the placement of stop signs on 8th Street at its intersection with 13th Avenue. First Reading – Ordinance No. 38-08: Sunday Sales. First reading was held on Ordinance No. 38-08, An Ordinance Amending Section 6-4 Of The Revised Ordinances Of The City Of Brookings And Pertaining To The Sale Of Alcoholic Beverages On Sunday In The City Of Brookings. Public Hearing: October 14th First Reading – Ordinance No. 39-08: conditional use. First reading was held on Ordinance No. 39-08, An Ordinance establishing a conditional use to establish an apartment on the W ½ of the W ½ of Lots 1 – 4, excluding Lot H-1, Block 11, Skinners Second Addition (1016 6th Street). Public Hearing: October 14th First Reading – Ordinance No. 40-08: Rezoning. First reading was held on Ordinance No. 40- 08, An Ordinance rezoning Lot 3, Nelson Eighth Addition from an Agricultural A District to a Residence R-1B District (15th Street South and Medary Avenue area). Public Hearing: October 14th City Council Packet October 14, 2008 59 2nd Reading – Ordinance No. 37-08: Sidewalk Sales. A motion was made by Reed, seconded by Whaley, to approve Ordinance No. 37-08, an ordinance providing for the sale and consumption of alcoholic beverages upon property adjoining a licensed premises in the City of Brookings, South Dakota (Sidewalk Sales). All present voted yes; motion carried. 2nd Reading – Ordinance No. 36-08. A motion was made by Bartley, seconded by Reed, to approve Ordinance No. 36-08, an ordinance amending and revising various building, property maintenance and nuisance ordinances of the City of Brookings, South Dakota. All present voted yes; motion carried. Resolution No. 84-08: Wine Operating Agreement. A motion was made by Brunner, seconded by Reed, to approve Resolution No. 84-08, authorizing the City Manager to enter into a Wine Operating Agreement for Hagman’s Bakery, 307 & 311 Third Street, Doug & Pam Hagman, owners. All present voted yes; motion carried. Resolution No. 84-08 Hagman’s Bakery Wine Operating Agreement BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for Wine between the City of Brookings and the Hagman’s Bakery for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 307 and 311 Third Street. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. On-Sale Malt License: Hagman’s Bakery. A motion was made by McClemans, seconded by Brunner, to approve an On-Sale Malt License for Hagman’s Bakery, 307 & 311 Third Street, Doug & Pam Hagman, owners. All present voted yes; motion carried. Presentation of the Final 2007 City of Brookings Audit by Dick Ellis, Wohlenberg Ritzman & Co. LLC. Dick Ellis, from the firm of Wohlenberg, Ritzman & Co. LLC., presented the final 2007 City of Brookings Audit to the Council. A copy is available for public inspection at the City Clerk’s Office or on the city website at www.cityofbrookings.org. Ellis said this is a “clean opinion” and it doesn’t get any better. He noted that the majority of the report is the responsibility of the city. He praised the City for being very proactive, noting in the particular the hiring of a deputy finance manager. In his opinion, the City Finance Department has been short staffed and this addition has improved processes and the financials. Ellis said governmental auditing standards are changing. Before an audit is done, the entity turns over the audit materials. He said most cities he audits have segregation of duties problems, but Brookings has taken the initiative to address this issue by hiring staff who can prepare financial statements and provide internal monitoring. These tasks can’t be performed by the Department of Legislative Audit or auditors. He also praised the city for its employee development statement in the Governance and Ends Policy, citing it is important for a city to want their employees to grow and get more education. As progressive and aggressive as the City of Brookings is, a clean opinion and well presented financial statement is very important. Under the new standards there is one addition which is the management discussion and analysis which compares the good and bad differences City Council Packet October 14, 2008 60 between the current and prior year. Brookings had done a wonderful job. Assets exceeded liabilities with no general obligation bonds and fairly low debt. Mayor Munsterman asked if there was anything the city could be doing better. He noted that the City’s focus for several years has been to get in a strong financial position. Ellis said City should conduct a formalized risk assessment which is approved by the Council, but this is purely a housekeeping measure. The Council accepted the report and commended city staff for their efforts. Storm Water Master Plan. Jackie Lanning, City Engineer, said that Troy Thompson, President of Ecological Resource Consultants, Inc. of Evergreen, Colorado, presented the draft results of the storm water master plan on June 17, 2008. She said the results are based upon a comprehensive storm water study utilizing the SWMM model and the plan included options for storm water improvement projects throughout Brookings. The consultant incorporated comments into the plan and the Master Plan has been finalized and is ready for adoption by the City Council. She commented that there were two main changes: an additional study area was added based on complaints received and the CN values changed. She recommended the Council take action to accept the plan and then schedule future work sessions to prioritize the issues and provide direction to city staff. Issues include defining storm event upgrades for particular areas. The City Council may choose to upgrade to a certain storm size depending on the population in that area. She recommended the first place to invest funds would be detention facilities because it would involve dirt work but not much in facilities costs, but would reap a lot of benefits. Munsterman said he wasn’t in big hurry to adopt the plan. He felt the plan should define the direction and priorities before adoption and recommended the Council schedule a 4 to 6 hour work session to better understand the plan and set priorities for a long term approach. He also felt the Council needs to get input from developers and citizens on the plan. Bartley said the Council needs input from staff on prioritizing and he isn’t comfortable making those decisions. He felt this was a great report, but it will take a while for staff to analyze it and then they should bring it back to Council with their recommendations and explanations. He didn’t know how much time that would take. Reed agreed with Bartley, but also wondered how to get public input into the process early. He suggested gathering input first and then let staff proceed with review and recommendations with the list of input in hand to review. Bartley agreed that public testimony is critical and hoped staff would take testimony from primary people. However, he would prefer that process be done with staff rather than Council and that staff come back to City Council with recommendations. McClemans said public and developer involvement is important and there’s a ton of information to review and understand. Letting developers understand what is expected of them is important and City Council Packet October 14, 2008 61 this should be done prior rather than after the fact. He suggested an afternoon of explanation and driving around town to look at areas to gain a better understanding of why a particular recommendation is best for that area. He reiterated the need to work with developers and the public to gather input so everyone understands the goal. Bezdichek recommended a blend of informal and formal meetings to gather input on the plan. Informal meetings could involve city staff meeting one-on-one with the public over a specified number of days. These informal meetings would still have an agenda and those individuals would be provided as much time as necessary to hear their concerns. Comments made at the informal meetings would be provided to the City Council. The formal meetings would be with the Council with public would be invited to attend. He stressed more ‘formality’ in the informal meetings with staff. Lanning suggested utilizing a similar method to the streetscape meetings in where city staff notified all business owners and met with all who requested a meeting. She would notify the public through media releases, direct mailings and other means. Brunner agreed with all comments and stressed the need for a lot of public input from developers and people who live in these areas in order to give the Council better insight into the issues. He also urged the Council to keep a close eye on a cost benefit analysis when prioritizing areas and investments. Reed said he was concerned about the process and suggested staff present Council with a process plan and timeline and the Council formally adopt it. ACTION: A motion was made by Reed, seconded by Brunner, to accept the Master Drainage Report as provided by Ecological Resources Consultants, to direct staff to develop a process and timeline to bring back to the council for approval, and the council take action to set a date for a major strategy session. Discussion: There was discussion about whether or not to adopt or accept the plan at this point. Bartley recommended the Council adopt the plan. Munsterman expressed concern that it was data and not a plan because it didn’t include priorities. Bartley felt the study was complete because it identifies all the problem areas with specific remediation recommendations. He recommended the Council accept it as presented rather than question if it identified all the issues or not. Munsterman asked if there was a benefit to adopting it now or waiting to use it. Lanning questioned if would be appropriate for consultants to use the data modeling in the interim period. Britzman said developers and consultants could use whatever data they think is valid. The master plan would be the city’s planning document and intended to be comprehensive but broad. The city may make changes, but will set specific priorities based on this data. He recommended accepting the report from a data perspective so it can be used. This data will be used for the next step which is prioritization. Paul Moriarity, local developer, asked if a developer will be reading this master drainage plan and determine how to implement it or will the city set guidelines on how the developer will make use of the plan. Rick Wahlstrom, 1817 8th Street (Garden Square), said this area has been a problem since he moved into the area. He cited correspondence and conversations with previous mayors in the 1970s and 1980s regarding this issue and it still hasn’t been resolved. He said this area drains a terrific amount of the runoff of this city estimating one quarter City Council Packet October 14, 2008 62 of Brookings and that the City needs to do something. Residents were always told that the City was waiting for the university to straighten out their ditch and it will flow better, but that hasn’t happened yet. Water from an enormous area drains into the ditch (14th Avenue to east of 22nd Avenue and 8th Street to Elmwood). There are large areas of concrete nearby and if Brookings ever gets several inches like neighboring states have recently experienced, they will be flooded. He cited another factor is the above ground manhole which blocks water flowing down the ditch. He was speaking on behalf of several residents and they all want to make sure this plan isn’t just for the new areas of the city. He urged the Council that they have got to take a good look at this part of the city. On the motion, all present voted yes; motion carried. A copy of the plan has been provided as a separate document from the agenda packet. A copy will be available for public inspection at the City Clerk’s Office or on the city website at www.cityofbrookings.org. Executive Session. A motion was made by Whaley, seconded by Brunner, to enter Executive Session at 7:02 p.m. for purposes of discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, where public discussions would be harmful to the competitive position of the business with the Mayor, City Council, Acting City Manager, City Clerk, City Attorney and Steve Meyer, Brookings Municipal Utilities, present. A motion was made by Whaley, seconded by Reed, to exit Executive Session at 7:31 p.m. Adjourn. A motion was made by McClemans, seconded by Brunner, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:32 p.m. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 63 CONSENT AGENDA #4 4C. Action on Resolution No. 85-08, revising fees for various city services. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Resolution adopting/adjusting service charges and fees Attached is a resolution that adjusts various service charges and fees-for-service that are associated with city services. This is the final component of the budget adoption process. As a general budgetary policy, persons requesting special benefit services from the City should pay for that service through a fee or service charge. Conversely, general benefit services (those services used by most residents) should be financed by taxes. It should also be a budgetary policy that fees should be commensurate with the cost of providing the service. This cost-recovery policy attempts to capture as much of the true cost of providing the service without making it a profit center. It should not be considered a revenue source that supplements other parts of the budget. In a few cases, some services do not recover the actual cost of providing the service because to do so would either result in an exorbitant increase or would be extremely out of comparison with other communities. We have long had a practice of charging service fees and I am recommending we evaluate the amount of these fees on an annual basis to make sure we are maintaining adequate cost recovery. Many items in our fee and service charge schedule are not proposed to be changed while others are being adjusted to reflect increased costs of providing the service. In addition, we are instituting a charge for certain services where no charge previously existed but there should have been. This is the same principal as charging for a building permit, swimming lessons, dog licenses, or recreation programming. Many of these items are codified in this resolution from previous actions, some are associated with programs adopted such as building code versions, and some are limited by state law. Also attached is a listing of the same items with more history when they were originally adopted, and which ones we are recommending for an adjustment. Staff recommends adoption of the resolution adjusting the 2009 schedule for service charges. City Council Packet October 14, 2008 64 RESOLUTION NO. 85-08 A RESOLUTION REVISING FEES OF THE CITY OF BROOKINGS, SOUTH DAKOTA. WHEREAS the fines, fees, and procedures pertaining to services of the City of Brookings shall be revised and adopted annually, AND WHEREAS the City of Brookings requires weed removal, the Parks service fees shall be adopted, AND WHEREAS street and sidewalk snow removal is required under Section 74- 212, Article 5 of Chapter 74, the Street Department service fees shall be adopted under Section 74-213, AND WHEREAS the Engineer Department building permit fees required under service fees shall be adopted, under Section 22-35, Article II of Chapter 22 of the Code of Ordinances of the City of Brookings shall be revised, AND WHEREAS planning and zoning application fees required under Section 66-3 of Chapter 66 of the Code of Ordinances of the City of Brookings shall be revised, AND WHEREAS the Code Enforcement Ordinance 33-08 was adopted, the Code Enforcement fees shall be adopted, AND WHEREAS the Airport Board is recommending fees for land leases and fuel flowage the fees shall be adopted, AND WHEREAS the Code of Ordinances of the City of Brookings under Section 34- 4, Article 1 of Chapter 34, fees for services by the Fire Department shall be adopted, BE IT RESOLVED that the fees be adopted as follows: Parks, Recreation, & Forestry Weed Control plus contractor cost $25.00 Mowing 1st hour $60.00 each additional hour or fraction $35.00 each additional hour large area $50.00 Brookings Street Department Sidewalk Snow Removal --First Offense $100.00/Hr (1 Hr Minimum) Plus Sales Tax Sidewalk Snow Removal --Repeat Offense $150.00/Hr (1 Hr Minimum) Plus Sales Tax Sign Repairs Replacement Cost, Plus Labor, Sales Tax, City Council Packet October 14, 2008 65 --Traffic Accidents --Vandalism and Excise Tax Street Repairs Replacement Cost for Materials Brookings City Engineer’s Department Residential Building Permit Fees: The base valuation to determine permit fees for residential buildings and additions are based on a dollar per square foot schedule per the following. The bid price must be quoted for renovations or remodels. Dwellings: Single-family dwellings, duplexes, townhouses: Finished habitable space per square foot $65.00 Finished basements per square foot $24.00 Unfinished space (basement and upper levels) per square foot $18.00 Attached garages per square foot $20.00 Detached garages per square foot $18.00 Building Permit Fee Schedule Group R-3 and U Occupancies Only: Total Valuation Fees $1.00 - 1,200.00 $20.00 $1,200.01 – 2,000.00 $10.00 for the first $500 plus $1.50 for each additional $100 or fraction thereof, to and including $2,000, for valuations in excess of $1,100. $2,000.01 - 25,000.00 $32.50 for the first $2,000 plus $6.00 for each additional $1,000 or fraction thereof, to and including $25,000. $25,000.01 – 50,000.00 $170.50 for the first $25,000 plus $4.50 for each additional $1,000 or fraction thereof, to and including $50,000. $50,000.01 - 100,000.00 $283.00 for the first $50,000 plus $3.00 for each additional $1,000 or fraction thereof, to and including $100,000. $100,000.01 and up $433.00 for the first $100,000 plus $2.50 for each additional $1,000 or fraction thereof. Commercial Building Permit Fees: Commercial Building Permit Fee Schedule Groups A, B, E, F, H, I, M, S, Group R Division 1’s and Division 2’s (including Group U’s accessory to the R-1 and R-2 occupancies): Total Valuation Fees $1 - 700.00 $20.00 $700.01 to 2,000.00 For values in excess of $700.00, $15.00 for the first City Council Packet October 14, 2008 66 $500.00, plus $2.00 for each additional $100.00 or fraction thereof, to and including $2,000.00 $2,000.01 to 25,000.00 $45.00 for the first $2,000 plus $9.00 for each additional $1,000 or fraction thereof, to and including $25,000. $25,000.01 to 50,000.00 $252.00 for the first $25,000 plus $6.50 for each additional $1,000 or fraction thereof, to and including $50,000. $50,000.01 to 100,000.00 $414.50 for the first $50,000 plus $4.50 for each additional $1,000 or fraction thereof, to and including $100,000. $100,000.01 to 500,000.00 $639.50 for the first $100,000 plus $3.50 for each additional $1,000 or fraction thereof, to and including $500,000.00 $500,000.01 to 1,000,000.00 $2,039.50 for the first $500,000 plus $3.00 for each additional $1,000 or fraction thereof, to and including $1,000,000.00 $1,000,000.00 and up $3,539.50 for the first $1,000,000 plus $2.00 for each additional $1,000 or fraction thereof. Other Inspections and Fees: Inspections outside normal business hours per hour (minimum charge of one hour) $45.00 Inspection for which no fee is specifically indicated per hour (minimum charge of 1/2 hour) $45.00 Re-inspection fees assessed under provisions of Section R108 IRC and 108 IBC per hour $45.00 Driveway, demolition, window replacement and other minor construction per permit $25.00 Inspection fees assessed for moving of house $50.00 Planning and Zoning Change of Zone $230.00 Planned Development District $230.00 Final Development Plan $100.00 Major Amendment $230.00 Minor Amendment $75.00 Board of Adjustment $100.00 Preliminary Plats $150.00 Final Plats $100.00 Vacation $150.00 I-1R Site Plan $100.00 Conditional Use $175.00 Zoning & Use Registration Permit $ 50.00 City Council Packet October 14, 2008 67 Rental License --per structure $15.00 --for each dwelling unit for building with 7 or fewer units $2.00 --for each dwelling unit for buildings with 8 or more units $1.00 Annual License for Leases Dwelling Lease Building/in part or whole $15.00 Leased dwelling/7 units or less charge per unit within a building $2.00 Leased dwelling/8 units or more charge per unit within a building $1.00 Code Enforcement Code Enforcement Investigation per hour (1 hour minimum) $45.00 Industrial Lands Crop Land Lease Based on Bid (current lease: $105/acre crop, $40/acre hay land) Airport Fees Land Lease per square foot $.11 Fuel Flowage per gallon per gallon FBO: $0.06 Others: $0.06 Crop land Lease Based on Bid (current lease: $72/acre crop, $40/acre hay land) Brookings City Fire Department Fire Protection Systems Fees Fire Sprinkler Systems $75.00 plus $.45 per sprinkler head Retrofitted Fire Sprinkler Systems $75.00 plus $.45 per sprinkler head Kitchen Hood Extinguishing Systems $90.00 Kitchen Hood Extinguishing System Modification $45.00 Clean Agent or other Total Flooding System per square foot of covered area $.20 Fire Alarm Systems $75.00 + $.45 each initiation & signaling device Fire Alarm System Modifications $37.50 + $.45 each initiation & signaling device False Fire Alarm Calls when trucks roll $0.00 First Call $50.00 Second Call $100.00 Third Call Flammable & Combustible Liquids Flammable & Combustible Liquids $90.00 Flammable & Combustible Liquids Modifications $45.00 City Council Packet October 14, 2008 68 Site Plan Review Site Plan Review per hour (one hour minimum) $45.00 Inspections outside of normal business hours per hour (two hour minimum) $45.00 Re-inspection per hour (one hour minimum) $45.00 Passed and approved on this 14th day of October, 2008. CITY OF BROOKINGS _______________________________ Scott D. Munsterman, Mayor ATTEST: __________________________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 69 CONSENT AGENDA #4 4D. Action on Resolution No. 86-08, a Resolution setting forth a schedule of proposed Fines, Fees and Procedures pertaining to the keeping and control of animals in the City of Brookings, South Dakota. Resolution No. 86-08 sets forth fines, fees and procedures for animal control violations per the recently passed amendments to the Animal Control Ordinance. Fee amounts were based on staff recommendations and prepared by City Attorney Steve Britzman. RESOLUTION NO. 86-08 A RESOLUTION SETTING FORTH A SCHEDULE OF PROPOSED FINES, FEES AND PROCEDURES PERTAINING TO THE KEEPING AND CONTROL OF ANIMALS IN THE CITY OF BROOKINGS, SOUTH DAKOTA. BE IT RESOLVED by the City Council of the City of Brookings, South Dakota, that the following Schedule of Proposed Fines, Fees and Procedures shall be effective as of the date of this Resolution for all violations of Ordinances set forth herein. SCHEDULE OF PROPOSED FINES, FEES AND PROCEDURES Section Offense Fine/Fee/Procedure 14-2 Unwanted animals. $10.00 per head acceptance fee 14-3 Disturbance of peace. $25.00 14-4 Animals on school grounds property or recreation areas. $25.00 14-6 Number of pets limited. $20.00 14-7 Unattended animals in standing or parked vehicles. $50.00 14-8 Stray, abandoned or unkept animals. $25.00 14-9 Public nuisance. $25.00 14-41 Cruelty to animals generally. $100.00 14-42 Teasing, baiting or harassing. $25.00 14-43 Humane care of animals. $25.00 14-44 Poisoning of animals. $100.00 14-45 Instigating or allowing fights between animals. $200.00 14-47 Restraint of animal in a vehicle. $25.00 14-83 Swine. $25.00 per head 14-85 Keeping of bees. $50.00 14-87 Livestock running at large. $25.00 per head 14-88 Fowl at large. $25.00 per head 14-89 Picketing. $25.00 14-121 Dogs running at large. 1st License $10.00 1st Unlicensed $25.00 2nd $35.00 3rd and subsequent offenses City Council Packet October 14, 2008 70 $50.00 14-122 Impoundment of dogs. $20.00 per impoundment 14-123 Disturbance of the peace. $25.00 14-125 Defecation disposal. $25.00 14-126 Vicious or biting dogs. 1st offense $100.00 2nd offense $200.00 3rd offense $200.00 and Animal forfeited 14-127 Guard dogs. $50.00 failure to post warning 14-153 Rabies vaccination required. $50.00 14-154 Fee. $5.00 Altered & Have Proof $10.00 Unaltered 14-157 Dog or cat to wear tag. $10.00 14-182 Impoundment fees. $20.00 per head $10.00 per day feed/care 14-187 Pickup and transportation fee. $25.00 per animal 14-221 Registration required. $50.00 failure to register 14-223 Running at large. 1st Offense $100.00 2nd Offense $200.00 3rd Offense $200 and Animal forfeited 14-224 Prohibited generally. $100.00 & Seizure of animal 14-227 Owner to report escape of dangerous animals or animals not indigenous to State. $100.00 14-230 Animals declared as a biting, dangerous or vicious animal prohibited. $100.00 Passed and approved on the 14th day of October, 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 71 CONSENT AGENDA #4 E. Action on Resolution No. 87-08, setting the Unit Financial Charge for 2009 Storm Drainage Fees. The storm drainage fee ordinance was adopted in 1980s, which allowed the City to collect a drainage fee on all properties in the city limits. The collected fees are deposited in the Storm Drainage Budget and are used to maintain and enhance the current storm sewer system, purchase property for drainage projects and to construct new drainage facilities. The unit financial charge is set each year and it is used to calculate the drainage fees for each property. The drainage fee adopted last year for the 2008 (unit financial charge of .00036) budget was nearly doubled from the 2006 fee (unit financial charge of 0.00019). This increase in the drainage fund has been used to fund maintenance, the drainage master plan, new contour mapping, and the Indian Hills Drainage Project. In future years, this fund will be used to purchase property and construct additional retrofit drainage detention ponds and infrastructure, in addition to making storm sewer repairs, pipe cleaning and Phase II DENR requirements. The financial charge is set in the fall each year, so the storm drainage fees can be calculated and submitted to Brookings County for the property tax billing which will be collected the following year. The income for the drainage fee for the proposed 2009 budget was equal to the 2008 budget. The following is an example of the amount charged on a typical residential lot that is 11,000 square feet: 2006 cost: $15.68 2007 & 2008 cost: $31.35 2009 cost: $31.35 This resolution will adopt the financial charge of 0.00036 for 2009. The fee will be examined each year to determine if there is a need for additional funds to cover maintenance and project costs. City Council Packet October 14, 2008 72 RESOLUTION NO. 87-08 SETTING THE UNIT FINANCIAL CHARGE FOR 2009 STORM DRAINAGE FEES WHEREAS, Chapter 72, Section 72-1 (b), of Code of Ordinances for the City of Brookings, provides for setting the unit financial charge of Storm Drainage, by Resolution. NOW THEREFORE, BE IT RESOLVED that the unit financial charge shall be .00036 for Storm Drainage purposes. Passed and approved this 14th day of October, 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: __________________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 73 CONSENT AGENDA #4 F. Action on Resolution No. 88-08, authorizing the City Manager to sign a Wine Operating Agreement renewal for Old Sanctuary. The City of Brookings enters into operating agreements for a ten-year period. After five (5) years, that agreement is subject to a five-year renewal. Old Sanctuary, located in the 928 4th Street, entered into an operating agreement with the City in 2003. Resolution No. 88-08 would allow the City Manager to enter into the remaining five years of the agreement. Resolution No. 88-08 Old Sanctuary Wine Operating Agreement BE IT RESOLVED by the city of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for a Wine Operating Management Agreement between the City of Brookings and the Old Sanctuary, Dennis Bielfeldt, owner, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at the Old Sanctuary. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of ten years with a renewal in five (5) years. Passed and approved this 14th day of October 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 74 CONSENT AGENDA #4 4G. Action on bids for snow removal equipment for Street Department. Bids were opened on September 23 for the annual snow removal equipment bid awards. Attached is a copy of the bid tab showing the results of the bid letting. Three (3) Blades with wings: Bowes Construction was awarded bids on their motor graders with hourly rates of $145.00 (with chains) and $135.00 (no chains). One (1) 3- to 6-Yard Loader: Bowes Construction was awarded the bid on their 5- cubic yard loader with an hourly rate of $140.00. One (1) Loader with Reversible Blade: Prunty Construction was awarded the bid on their JD624H reversible plow with an hourly rate of $175.00. Twelve (12) End-Dump Trucks: The following bids were awarded for twelve trucks. Prussman Contracting Inc #20 $ 95.00 Prussman Contracting Inc #21 $ 95.00 Prussman Contracting Inc #22 $ 95.00 Prussman Contracting Inc #23 $ 95.00 GCC Ready Mix #5050 $ 110.00 GCC Ready Mix #5060 $ 110.00 Bowes Construction #T23 $ 90.00 Bowes Construction #T24 $ 90.00 Bowes Construction #T7 $ 90.00 Prunty Construction Co Inc #28 $ 90.00 Prunty Construction Co Inc #29 $ 90.00 Prunty Construction Co Inc #24 $ 90.00 Airport Snow Removal: No bids were received for Airport snow removal. City Council Packet October 14, 2008 75 Presentations/Reports/Special Requests: 5. INVITATION FOR A CITIZEN TO SCHEDULE TIME ON THE COUNCIL AGENDA FOR AN ISSUE NOT LISTED. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 6. SDSU REPORT. City Council Packet October 14, 2008 76 Presentations/Reports/Special Requests: 7. Presentation of Bike Route Proposal by SDSU Student Senate. Christopher J. Daugaard, President, SDSU Students' Association, will present the following Bike Routes in Brookings Proposal to the City Council. Bike Routes in Brookings, SD          For the Brookings City Council                         Revised October 6, 2008  $10,000 Plan 1 Proposed Phase 1 Bike Lanes   1. 7th Ave. to Medary Ave. along 11th St.    (Berg & Baily Halls to Medary)  2. North Campus Drive to 8th St. along Medary Ave.   Campus thoroughfare  3. Western Ave. to 20th Ave. along 8th St.   Runs length of 8th St. – connects many  neighborhoods with the intersections of 8th  St. / Medary Ave. and 8th St. / 16th Ave.  4. 8th St. to 3rd St. along 20th Ave.   Connects the neighborhoods further South  to 8th St.  5. 9th St. to 11th St. along 22nd Ave.   Connects the Blue Apartments to 11th St.  6. 16th Ave. to 22nd Ave. along 11th St.   Brings the 22nd Ave. traffic to the NE corner  of campus  7. 3rd St. to 9th St. along 12th Ave.   Provides for an alternative N/S route,  keeping bikes off of Medary Ave.  8. 1st Ave. to Medary Ave. along Harvey Dunn St.  2 3 Blue: Bike Lane w/o Parking Blue (Dashed): Alternative Route [to a nearby parallel route] Light Green: Bike Lane w/Parking Dark Green: Shared Lane Red: Existing Bike Path Natzel 4 Source of Figures * all of these figures came from the Safe Routes to School Estimates $4/foot estimated cost to paint bike lanes (Safe Routes Estimate) Cost of Phase One  University Contribution (Painting C ity Streets)   Length   Cost  N. Campus Dr. & Medary Ave to 8th St. & Medary Ave;    .5 miles $10,560.00  11th St. & Medary Ave to 11th St. & 7th Ave    .3 miles $6,336.00   8th St. & Medary Ave to 8th St. & 16th Ave    .5 miles $10,560.00  11th St. & 22nd Ave to 11th St. & 16th Ave    .5 mile  $10,560.00           Total $38,016.00    University Contribution (Painting University Property) Length Cost  11th St. & 16th Ave to 8th St. & 16th Ave    .3 miles $6,336.00  N. Campus Dr & Rotunda Ln to 9th St. & Rotunda Ln    .5 miles $10,560.00  Student Center Ln & Grove Ln to 16th Ave & Grove Ln  .1 miles $2,112.00  Student Center Ln & Grove Ln to Student Center Ln & 8th St. .2 miles $4,224.00  9th St. & 12th Ave to 9th St. & Rotunda Ln    121 ft.  $484.00  9th St. & 12th Ave to 8th St. & 12th Ave     354 ft.  $1,416.00  Student Center Ln & Grove Lane to N. Union Sidewalk  660 ft.  $2,640.00  Sidewalks on campus       .7 miles $14,784.00           Total $42,556.00    University One‐Time Costs  Units    Cost Per Unit  Total  New Bike Racks    50    $600.00*  $30,000.00           Total $30,000.00    Total University Contribution     Total $110,572.00    City One‐Time Costs  Items      Units  Cost Per Unit  Total  Stencil Symbols for routes (Safe Routes) 1  $500.00*  $500.00  Bike Route Signage (Units not known)  $400.00*              Total $500.00    City Streets        Length  Cost  Harvey Dunn & 1st Ave to Harvey Dunn & Medary Ave  .8 miles $16,896.00  8th St. & Western Ave to 8th St. & Medary Ave    1.0 miles $21,120.00  8th St. & 16th Ave to 3rd St. & 20th Ave     .8 miles $16,896.00  8th St. & 12th Ave to 3rd St. & 12th Ave     .4 miles $8,448.00  9th St. & 22nd Ave to 11th St. & 22nd Ave    .2 miles $4,224.00           Total $67,584.00    Total City Contribution      Total $68,084.00    Total Phase One       Total $178656.00  5 Long Term Plan Total Cost Location Length Total 3rd St. & Main Ave to 3rd St. & 22nd Ave 1.5 miles $31,680.00 8th St. S. & 22nd Ave to 8th St. S. & Main Ave 1.5 miles $31,680.00 12 St. S. & Main Ave to 12 St. S. & 22nd Ave 1.5 miles $31,680.00 6th St. & Main Ave to 8th St. & Main Ave .2 miles $4,224.00 11th St. & 7th Ave to 3rd St. & 7th Ave .8 miles $16,896.00 2nd St. S. & 7th Ave to 12th St. S. & 7th Ave .8 miles $16,896.00 8th St. S & Medary Ave to 15th St. S & Medary Ave .6 miles $12,672.00 3rd St. & 12th Ave to Orchard Dr. & 12th Ave .5 miles $10,560.00 3rd St. &17th Ave to 12th St. S. &17th Ave 1.1 miles $23,232.00 Orchard Dr & Medary Ave to Orchard Dr & 22nd Ave 1.1 miles $23,232.00 2nd St. & 6th Ave to 2nd St. & 7th Ave 410 ft $1,640.00 3rd St. & 6th Ave to 2nd St. S. & 6th Ave .2 miles $4,224.00 Total $208,616 Total Cost (Phase One + Long Term): $387,272.00 6 Conceptual drawing of intersection at 8th Street and Medary Avenue 7 Medary Avenue8th Street 8 Examples of Bike Lane Applications         9 March 2007 Mn/DOT Bikeway Facility Design Manual Chapter 4: On-Road Bikeways 79 1.2 m (4 ft) bike lane 3.6 m (12 ft) travel lane (typical) 0.3 m (1 ft) CL Curb & Gutter Bike Lane Stripe Pavement marking line 100 mm (4 in) wide solid white Bike Lane Symbol & Arrow Pre-cut plastic or stencil pavement markings LANE 1.8 m (6 ft) 1.2 m (4 ft) Note: Application of MN MUTCD Series R7-9 or R7-9a “NO PARKING BIKE LANE” signage may be used. Check current MN MUTCD for any changes to signs and striping configurations. ** Not to Scale ** Curb & Gutter 1.8 m (6 ft) 1.2 m (4 ft) 1.8 m (6 ft) * See Table 4-1 for bicycle lane width #R3-17 #R8-3a Install #R3-17 signs and pavement symbols at periodic intervals along the bicycle lane BIKE LANE BIKE LANE Figure 4-10: Bicycle Lane with No Parking and Standard Gutter Pan 10 March 2007 Mn/DOT Bikeway Facility Design Manual Chapter 4: On-Road Bikeways 89 LANE Install #R3-17 signs and pavement symbols at periodic intervals along the bicycle lane Curb & Gutter Bike Lane Symbol & Arrow Pre-cut plastic or stencil pavement markings Bike Lane Stripe Pavement marking line 100 mm (4 in) wide solid white Parking Stripe Pavement marking line 100 mm (4 in) wide solid white Design Requirements Parked C a r EXISTING 1.8 m (6 ft) 1.2 m (4 ft) 1.8 m (6 ft) 1.8 m (6 ft) 1.2 m (4 ft) 2.4 m(8 ft) parking lane 4.2 m(14 ft) travel lane CL 6.6 m (22 ft) #R3-17 PROPOSED 1.5 m(5 ft) bike lane 3.0 m(10 ft) travel lane 2.1 m(7 ft) parking lane CL ** Not to Scale ** Note: Check current MN MUTCD for any changes to signs and striping configurations. BIKE LANE BIKE LANE Figure 4-18: Constrained R.O.W. with Parking Case B (44-Foot Right-of-Way) 11 March 2007 Mn/DOT Bikeway Facility Design Manual Chapter 4: On-Road Bikeways 97 3.6 - 4.2 m(12 - 14 ft) travel lane Optional: Install Share the Road signs to warn drivers to watch for bicyclists traveling along the road in rural situations where there is no paved shoulder and a large number of bicycles use the roadway. Space signs every 1.6 - 3.2 km (1 - 2 mi) and/or on corners, hills, or other places with limited sight distances. #W11-1 & W16-1 S H A R E T H E R O A D S H A R E T H E R O A D Curb & Gutter ** Not to Scale ** CL Note: Application of MN MUTCD Series R7 and/or R8 “NO PARKING” signage may also be appropriate. Check current MN MUTCD for any changes to signs and striping configurations. Curb & Gutter Figure 4-24: Shared Lane, Urban Cross Section with No Parking 12 Design Bike Lanes guide for the development of bicycle facilities 29 ´ˆ˜¯˘˙¨˚´ˆ˜¯˘˙¨˚´˘˝´ˆ˜¯˘˙¨ˆ˜¨˘˚¨˝˜¨˜˚ ˚˘ ˜¯˘ˆ˝˜¨ˆ ˜¨˜¨ ˜ !" $%˜˚˘ R4-4 at beginning of right-turn lane R3-7R R4-4 at beginning of right-turn lane R3-7R a. Right-turn-only lane b. Parking lane into right-turn-only lane W11-1 and W16-1 (optional) R3-8 d. Optional right/straight and right-turn-only lane R4-4 at beginning of right-turn lane R3-7R c. Right-turn-only lane NOTE: The dotted lines in cases “a” and “b” are optional (see case “c”.) Figure 11. Bike Lanes Approaching Right-Turn-Only Lanes 13 City Council Packet October 14, 2008 92 Public Hearings, Second Readings, Ordinances: 8. Public hearing and action on Resolution 89-08, vacating 4th Street between 5th Avenue and 6th Avenue. Applicants: Larson Foundation and City of Brookings Proposal: Vacate one block of 4th Street abutting Central Elementary School Background: In 1879, the Brookings County Press reported that several blocks had been platted by the Western Town Lot Company, a subsidiary of the Chicago and Northwestern Railroad. The streets and avenues on the plats were named after prominent men and old settlers from the Brookings area. Williams Street was one of the names selected but was subsequently changed to 4th Street is 1929. Several other “named” streets had been “numbered” many years prior. Specifics: 4th Street is a local street with an 80 foot wide right-of-way. The 5th Avenue intersection is a 4-way stop, and the 6th Avenue intersection is a 3-way stop. Parking is angled along the south and parallel along the north for pick-up and drop-off. If you refer to the Final Development Plan of the Children’s Museum, you will see a proposed use of 4th Street if it were vacated. The plan indicates a one-way access drive with diagonal parking and bus loading. The existing streetscape would be redesigned to match landscape elements of the Final Development Plan. Vacating the right-of-way would expand the property line to the center of the street for both abutting landowners. Therefore, any future plan for the vacated street would involve agreements, etc. between both parties. In addition, utility easements and public access easements may need to be required with any approval. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend vacating the street subject to utility easements as required by BMU and the City of Brookings. Action: Open & Close Public Hearing, Motion to approve, Roll Call City Manager Recommendation - Approve City Council Packet October 14, 2008 93 Prepared by: City Clerk’s Office PO Box 270 Brookings, SD 57006 Resolution No. 89-08 STREET VACATION WHEREAS, a petition to vacate has been filed with the City Clerk of the City of Brookings, and WHEREAS, the petition was filed in proper form and signed by one hundred percent (100%) of the adjacent property owners. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brookings: That the portion of 4th Street abutting Lot 101, Block 1, First Addition and the north 100 feet of Lots 1 and 2, and all of Lots 3, 4, 5, 6, and 7, Block 2, First Addition located between 5th Avenue and 6th Avenue is vacated subject to a right-of-way easement over the north half of the street to be vacated. LET IT BE FURTHER RESOLVED that this Resolution shall become effective on April 1, 2009. Passed and approved this 14th day of October, 2008. CITY OF BROOKINGS __________________________ Scott D. Munsterman, Mayor ATTEST: _______________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 95 Planning Commission Brookings, South Dakota August 5, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on August 5, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were David Kurtz, Al Gregg, Al Heuton, Curt Ness, Larry Fjeldos, John Gustafson, and Fargen. Stacey Howlett and Mike Cameron were absent. Also present were Dennis Bielfeldt, Sarah Aldinger, Dick Dempster, Lyle Pudwill, Tim Burns, City Engineer Jackie Lanning, City Manager Jeff Weldon, City Planner Dan Hanson, and others. Item #6 – Larson Foundation and the City of Brookings have submitted a petition to vacate that portion of 4th Street abutting Lot 101, Block 1, First Addition and the north 100 feet of Lots 1 and 2, and all of Lots 3, 4, 5, 6, and 7, Block 2, First Addition located between 5th Avenue and 6th Avenue. (Gregg/Ness) Motion to approve the street vacation. (Gregg/Ness) Amendment to the motion to add “subject to utility easements as required by Brookings Municipal Utilities and the City of Brookings.” All present voted aye. AMENDMENT CARRIED. The motion, as amended, was voted on. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #6 – Kurtz asked if traffic could be prevented from entering the area if the street were vacated. Hanson responded that the ends could be gated. Pudwill remarked that the intent was not to deny access but redesign the street so that traffic would be slowed. Hanson recommended that vacation of the street be subject to utility/ access easements. The Commission concurred. City Council Packet October 14, 2008 96 NOTICE OF HEARING UPON PETITION TO VACATE NOTICE IS HEREBY GIVEN That the Larson Foundation and the City of Brookings have submitted a petition to vacate that portion of 4th Street abutting Lot 101, Block 1, First Addition and the north 100 feet of Lots 1 and 2, and all of Lots 3, 4, 5, 6, and 7, Block 2, First Addition located between 5th Avenue and 6th Avenue . NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 7:00 PM on Tuesday, August 5, 2008 in the Council Chamber in the lower level of City Hall, Brookings, South Dakota. Any person interested may appear and be heard in this matter. Dated this 25th day of July 2008. ___________________________ Secretary/City Planner Dan Hanson City Council Packet October 14, 2008 97 Public Hearings, Second Readings, Ordinances: 9. Public hearing and action on Resolution No. 90-08, a resolution of intent to lease real property to a private entity. State law requires a public hearing be held when a municipality intends to lease residential property for more than 120 days. (ref. SDCL 9-12-5.2) Pursuant to this statute a public hearing has been set for this meeting to lease the city-owned residential property at 2150 Derdall Drive in Brookings to Mike and Sarah Wilson. RESOLUTION NO. 90-08 RESOLUTION OF INTENT TO LEASE REAL PROPERTY TO PRIVATE ENTITY BE IT RESOLVED by the governing body of the City of Brookings, South Dakota that the City of Brookings intends to enter into a Lease with Mike and Sarah Wilson, for a period of one year and pertaining to the following described property: Lot One (1) and the East Ten Feet (E 10') of Lot Two (2) in Block Thirteen (13) of East Acres Second Addition to the City of Brookings, County of Brookings, State of South Dakota; Also described as follows: Lot One (1) and the Easterly Ten Feet (Etrly 10') of Lot Two (2) adjacent to Lot One (1) in Block Thirteen (13) of East Acres Second Addition to the City of Brookings, County of Brookings, State of South Dakota. BE IT FURTHER NOTED, that a Public Hearing on this Resolution was held on this 14th day of October, 2008 at 6:00 o'clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 14th day of October, 2008. CITY OF BROOKINGS, SOUTH DAKOTA Scott D. Munsterman, Mayor ATTEST: Shari L. Thornes, City Clerk Action: Open & Close Public Hearing, Motion to approve, Roll Call City Manager Recommendation – Approve City Council Packet October 14, 2008 98 Public Hearings, Second Readings, Ordinances: 10. Action authorizing the City Manager to enter into a lease agreement with Mike and Sarah Wilson for the rental of property at 2150 Derdall Drive. The Council’s action to approve Resolution No. 90-08 will allow the City to enter into the attached lease agreement with Mike and Sarah Wilson for property located at 2150 Derdall Drive. The Wilson’s wanted to take possession of the property immediately so the City Manager rented the property for the month of October on a verbal arrangement since the execution of the lease could not take place until this meeting in October. For this month, the same terms and conditions as in the lease apply. The term of the lease is for one year beginning November 1, 2008. Action: Motion to approve, request public comment, roll call City Manager Recommendation – Approve City Council Packet October 14, 2008 99 LEASE AGREEMENT _____________ THIS LEASE AGREEMENT (hereafter the “Agreement”) is made and entered into this 15th day of October, 2008, by and between the City of Brookings, South Dakota, Inc., a South Dakota Municipal Corporation, (hereinafter referred to as “Lessor”), and Mike and Sarah Wilson, (hereinafter referred to as “Tenants”), for the rental of the dwelling located at 2150 Derdall Drive, Brookings, South Dakota 57006. WITNESSETH: FOR AND IN CONSIDERATION of the mutual covenants, promises and conditions set forth and contained herein, the parties to this Lease Agreement covenant and agree as follows: 1. EFFECTIVE DATE This Lease Agreement shall be effective upon execution by both parties hereto. 2. DESCRIPTION OF THE PROPERTY TO BE LEASED It is understood and agreed, subject to the terms and conditions set forth in this Agreement, that Lessor hereby agrees to lease to Tenants, and Tenants hereby agree to lease from Lessor, for the amounts and according to the terms provided in this Agreement, the property located at 2150 Derdall Drive, Brookings, South Dakota 57006. 3. TERM OF LEASE / OCCUPANCY Lessor and Tenants agree to lease this dwelling for a term beginning November 1, 2008 and ending October 31, 2009. This Lease will automatically renew monthly unless terminated by Lessor or Tenants. If either Tenants or Lessor desires to terminate this Lease following the initial term, then either party shall give the other party thirty (30) days notice of termination. 4. LEASE PAYMENTS/LATE RENTAL PAYMENT AND RETURNED CHECKS Tenants agree to pay Lessor on or before the first (1st) day of each month, a monthly rental payment of One Thousand and no/100 ($1,000.00) Dollars, payable at City Hall, P.O. Box 270, Brookings, South Dakota 57006. Rent that is paid after the 15th of the month is subject to a late charge of Fifty Dollars ($50.00) which shall be paid with the rent payment which is late. Lessor shall not be obligated to accept late payments and may pursue eviction proceedings in the event rent is not paid when due. If any of Tenants’ checks are returned for insufficient funds, Tenants shall pay Lessor a bad check charge of Thirty Dollars ($30.00) payable immediately upon notification of the bad check. 5. MAINTENANCE AND REPAIR City Council Packet October 14, 2008 100 Lessor shall maintain the exterior of the residence, including the roof. Tenants shall maintain the driveway, sidewalk and lawn, to include snow removal and mowing as needed. The Tenants will maintain the condition of the interior of the residence, except for ordinary wear and tear; and will promptly replace and repair all breakage or damages caused by Tenants with material of the same quality. Prior to completing any repairs, Tenants shall obtain permission from Lessor. Tenants will not make any structural alternations or additions to the residence without the written consent of Lessor. 6. UTILITIES During Tenants’ occupancy, Tenants agree to timely pay all of the utilities. Lessor shall have no obligation to pay utilities under this Lease Agreement. 7. INSURANCE The Lessor shall maintain fire and casualty insurance for the residence. The Tenants shall insure their own personal property to the extent they desire. 8. FIRE OR CASUALTY In the event the leased premises are wholly or partially destroyed by fire or other casualty covered by the usual form of fire and extended casualty insurance which renders the premises untenantable, this Lease shall terminate. In the event of lease termination due to destruction of the residence, rent shall abate and the unearned portion shall be refunded. 9. USE OF PREMISES The property described above is leased to the Tenants for the sole purpose of residential living. Tenants agree to comply with all applicable laws, ordinances and regulations in connection with their use of the leased premises. 10. SUBLEASE The premises may not be subleased without written consent of the Lessor; and shall not be used for any purpose other than a dwelling for the Tenants named herein. 11. LESSOR’S ACCESS Lessor and its agents shall have the right to enter the rented premises at reasonable times upon twenty-four (24) hours notice to inspect the premises; to insure maintenance, and to repair any damage to the premises. 12. INJURY AND LOSS City Council Packet October 14, 2008 101 Lessor shall not be responsible or liable for any loss, theft or damage to property or injury to or death of Tenants or any person on or about the leased premises, and Tenants agree to indemnify, defend and hold Lessor harmless therefrom. 13. SURRENDER At the expiration of the initial term of this Lease, or any renewal thereof, Tenants shall quit and surrender the premises hereby leased in as good a state and condition as reasonable use and wear thereof will permit. Any holding over by Tenants shall not operate, except by written agreement, to extend or renew this Lease, and no tenancy of any duration shall be created thereby. 14. WAIVER The consent of the Lessor in any instance to any variation of the terms of this Lease, or the receipt of rent with knowledge of any breach, shall not be deemed to be a waiver as to any breach of any covenant or condition herein contained, nor shall any waiver be claimed as to any provision of this Lease unless the same be in writing, signed by the Lessor or Lessor’s Agent. IN WITNESS WHEREOF, the parties hereto have executed this Agreement and by their execution each acknowledge receipt of one original copy and further acknowledge that this Agreement is binding upon themselves, their heirs, next of kin and personal representatives. Dated: October 14, 2008 CITY OF BROOKINGS, SOUTH DAKOTA, Lessor By: ________________________________ Jeffrey W. Weldon Its: City Manager ATTEST: Shari Thornes, Brookings City Clerk Dated: October 14, 2008 TENANTS: Mike & Sarah Wilson ____________________________________ Tenant’s Signature Tenant’s Signature City Council Packet October 14, 2008 102 Public Hearings, Second Readings, Ordinances: 11. Ordinance No. 38-08, An Ordinance Amending Section 6- 4 of the Revised Ordinances of the City of Brookings and pertaining to the Sale of Alcoholic Beverages on Sunday in the City of Brookings. Attached are amendments to the Sunday Sales Ordinance pertaining to the sale and consumption of alcohol within the City limits of Brookings. The revisions were prepared by the City Attorney and reviewed in draft form at the City Council’s September 9th work session. Note that the draft changed from that review. Pursuant to earlier discussions of the Liquor Ad Hoc Committee, the start time was revised from 11:00 a.m. to 10:00 a.m. to accommodate various special promotions currently provided by local businesses (“champagne brunch”). Sec. 6-4. Sunday sales permitted by the holders of operating agreements light wine licenses, the municipal off-sale licensee and off-sale malt beverage and certain other licensees. (a) Notwithstanding any of the other provisions of this chapter, any holder of an operating agreement may sell, serve and allow to be consumed on the premises covered by their operating agreement, alcoholic beverages between the hours of 10:00 a.m. 11:00 a.m. and 12:00 midnight on Sunday with the serving of food where the holder of the operating agreement who applies for a Sunday sales permit has facilities for the serving of prepared meals from a fixed restaurant with the simultaneous seating capacity of at least 50 patrons. (c) (b) Notwithstanding any of the other provisions of this chapter, any holder of retail malt beverage license or on-sale wine license may sell, serve and allow to be consumed on the premises covered by their license, malt beverages and wine between the hours of 10:00 a.m. 11:00 a.m. and 12:00 midnight on Sunday. (e) Notwithstanding any other provisions of this chapter, any holder of a special malt beverage retailers’ license and a special retail on-sale wine dealers’ license may sell, serve and allow to be consumed on the premises on Sunday between the hours of 10:00 a.m. and 12:00 midnight on Sunday for consumption on the premises where sold. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve City Council Packet October 14, 2008 103 ORDINANCE NO. 38-08 An Ordinance Amending Section 6-4 Of The Revised Ordinances Of The City Of Brookings And Pertaining To The Sale Of Alcoholic Beverages On Sunday In The City Of Brookings. Be It Ordained And Enacted By The Council Of The City Of Brookings, State Of South Dakota, As Follows: I. Sec. 6-4. Sunday sales permitted by the holders of operating agreements light wine licenses, the municipal off-sale licensee and off-sale malt beverage and certain other licensees. (a) Notwithstanding any of the other provisions of this chapter, any holder of an operating agreement may sell, serve and allow to be consumed on the premises covered by their operating agreement, alcoholic beverages between the hours of 10:00 a.m. 11:00 a.m. and 12:00 midnight on Sunday with the serving of food where the holder of the operating agreement who applies for a Sunday sales permit has facilities for the serving of prepared meals from a fixed restaurant with the simultaneous seating capacity of at least 50 patrons. (b) Notwithstanding any of the other provisions of this chapter, any owner or operator of a restaurant which holds a license as an on-sale dealer in wine for Sunday under SDCL 35-4-2(12) may sell, serve and allow to be consumed on the premises covered by the license, the beverages permitted by such license, between 12:00 p.m. and 12:00 midnight on Sunday with the serving of food. The term “restaurant” as used in this section shall mean only a room regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation which has suitable table accommodations for at least 50 guests therein at one and the same time, and a kitchen connected therewith containing conveniences for cooking sufficient to provide meals in a bona fide manner for 50 guests at one and the same time. (c) (b) Notwithstanding any of the other provisions of this chapter, any holder of retail malt beverage license or on-sale wine license may sell, serve and allow to be consumed on the premises covered by their license, malt beverages and wine between the hours of 10:00 a.m. 11:00 a.m. and 12:00 midnight on Sunday. (d) (c) The municipal off-sale licensee and licensed off-sale malt beverage and off-sale wine retailers may sell and allow to be sold malt beverages and wine on Sunday after 7:00 o’clock a.m. for consumption off the premises where sold. (d) Notwithstanding any other provisions of this chapter, any holder of a special off-sale package wine dealers license may sell and allow to be sold wine manufactured by a farm winery that is licensed pursuant to Chapter 35-12 on Sunday after 7:00 a.m. for consumption off the premises where sold. City Council Packet October 14, 2008 104 (e) Notwithstanding any other provisions of this chapter, any holder of a special malt beverage retailers’ license and a special retail on-sale wine dealers’ license may sell, serve and allow to be consumed on the premises on Sunday between the hours of 10:00 a.m. and 12:00 midnight on Sunday for consumption on the premises where sold. (f) Except as permitted in this section, no person within the city shall sell, offer for sale, serve or allow to be consumed on the premises covered by a state license any alcoholic beverages on Sunday. II. Any or all ordinances in conflict herewith are hereby repealed. FIRST READING: September 23, 2008 SECOND READING: October 14, 2008 PUBLISHED: October 17, 2008 CITY OF BROOKINGS, SOUTH DAKOTA Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 105 -- Clean Copy -- ORDINANCE NO. 38-08 An Ordinance Amending Section 6-4 Of The Revised Ordinances Of The City Of Brookings And Pertaining To The Sale Of Alcoholic Beverages On Sunday In The City Of Brookings. Be It Ordained And Enacted By The Council Of The City Of Brookings, State Of South Dakota, As Follows: I. Sec. 6-4. Sunday sales permitted by the holders of operating agreements and certain other licensees. (a) Notwithstanding any of the other provisions of this chapter, any holder of an operating agreement may sell, serve and allow to be consumed on the premises covered by their operating agreement, alcoholic beverages between the hours of 10:00 a.m. and 12:00 midnight on Sunday with the serving of food where the holder of the operating agreement who applies for a Sunday sales permit has facilities for the serving of prepared meals from a fixed restaurant with the simultaneous seating capacity of at least 50 patrons. (b) Notwithstanding any of the other provisions of this chapter, any holder of retail malt beverage license or on-sale wine license may sell, serve and allow to be consumed on the premises covered by their license, malt beverages and wine between the hours of 10:00 a.m. and 12:00 midnight on Sunday. (c) The municipal off-sale licensee and licensed off-sale malt beverage and off-sale wine retailers may sell and allow to be sold malt beverages and wine on Sunday after 7:00 o’clock a.m. for consumption off the premises where sold. (d) Notwithstanding any other provisions of this chapter, any holder of a special off- sale package wine dealers license may sell and allow to be sold wine manufactured by a farm winery that is licensed pursuant to Chapter 35-12 on Sunday after 7:00 a.m. for consumption off the premises where sold. (e) Notwithstanding any other provisions of this chapter, any holder of a special malt beverage retailers’ license and a special retail on-sale wine dealers’ license may sell, serve and allow to be consumed on the premises on Sunday between the hours of 10:00 a.m. and 12:00 midnight on Sunday for consumption on the premises where sold. II. Any or all ordinances in conflict herewith are hereby repealed. City Council Packet October 14, 2008 106 FIRST READING: September 23, 2008 SECOND READING: October 14, 2008 PUBLISHED: October 17, 2008 CITY OF BROOKINGS, SOUTH DAKOTA Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 107 Public Hearings, Second Readings, Ordinances 12. Ordinance No. 39-08, An Ordinance establishing a conditional use to establish an apartment on the W ½ of the W ½ of Lots 1 – 4, excluding Lot H-1, Block 11, Skinners Second Addition (1016 6th Street). Applicant: VPMN Partners Proposal: Construct a mixed use commercial building with offices and an apartment Background: A single-family dwelling has existed on this lot for many years. The remaining north half of this block has a bank, a movie rental store, an office/apartment use and two residences. The entire half block is zoned B-2. Specifics: The B-2 District permits an office use, by right, and an apartment by conditional use. The proposal is to have offices on the main level with up front parking. The second level will have an apartment with parking off the alley. An existing approach off 6th Street would be shared by the bank and office. Adjacent properties consist of a mix of retail, office, and residential uses. This proposed use would be similar, and the impact of the development on the adjacent properties would likely be minimal given its design and size. Recommendation: The Planning Commission voted 0 yes and 4 no, with one abstention, to recommend that this Conditional Use not be approved. Action: Open & Close Public Hearing, Motion to approve, Roll Call City Manager Recommendation – Approve City Council Packet October 14, 2008 108 Ordinance No. 39-08 An ordinance pertaining to an application for a Conditional Use for an apartment use in the Business B-2 District. Be it ordained by the governing body of the City of Brookings, South Dakota that said Conditional Use shall be approved for an apartment on the West ½ of the West ½ of Lots 1, 2, 3, and 4, Block 11, Skinner’s Second Addition with the following conditions: None All sections and ordinances in conflict herewith are hereby repealed. FIRST READING: September 23, 2008 SECOND READING: October 14, 2008 PUBLISHED: October 17, 2008 CITY OF BROOKINGS __________________________ Scott D. Munsterman, Mayor ATTEST: __________________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 113 Planning Commission Brookings, South Dakota September 2, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on September 2, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were, Al Gregg, Al Heuton, Curt Ness, Larry Fjeldos, and Fargen. Stacey Howlett, Mike Cameron, David Kurtz, and John Gustafson, were absent. Also present were Wade Price, Colleen Vukovich, City Engineer Jackie Lanning, City Manager Jeff Weldon, Toby Morris, Wayne Wagner, Beverly Dobbs, City Planner Dan Hanson, and others. Item #4 – VPMN Partners has submitted an application for a Conditional Use on the following described real estate: the west 1/2, W 1/2 of Lots 1, 2, 3, and 4, excluding Lot H-1, Block 11, Skinner's Second Addition, also known as 1016 6th Street. The request is to establish an apartment use in the Business B-2 District. (Ness/Heuton) Motion to approve the conditional use. (Heuton/Ness) Amendment to the motion to require a landscape area abutting 6th Street to include a 30 to 40 square foot area for plantings. Ness and Heuton voted aye. Gregg and Fjeldos voted no. Fargen abstained. AMENDMENT FAILED. The motion was voted on. All present voted no except Fargen abstained. MOTION FAILED. SUMMARY OF DISCUSSION Item #4 – Wade Price, representing VPMN Partners, stated the apartment would be on the second floor and contain three (3) bedrooms. Heuton was concerned about the location of the building on the lot. He also felt the community’s image was important regarding the redevelopment of the block. He recommended that approval should be subject to additional landscape requirements since the block had little landscaping now. Price noted that he would like to save the evergreen tree, but the elm trees would go. Fargen asked if parking off the alley was for the apartment. Price replied yes. Fjeldos felt the project was too large for this size lot. He favored clustering businesses in other areas versus packing them in on 6th Street. Fargen remarked that the current number of property owners on the half-block was too numerous to think that a unified plan could be attained. Colleen Vukovich, another partner, stated their project would make the block more attractive, but they could not control other properties. City Council Packet October 14, 2008 114 Public Hearings, Second Readings, Ordinances 13. Ordinance No. 40-08, An Ordinance rezoning Lot 3, Nelson Eighth Addition from an Agricultural A District to a Residence R-1B District (15th Street South and Medary Avenue area). Applicant: City of Brookings Proposal: Establish a low-density residential district Background: The City of Brookings purchased this property from an abutting landowner in 1998. Land to the north, west, and southwest has been developed for low- density residential uses. Land to the east is in a high-density district but is currently undeveloped. Specifics: The lot contains 3.3 acres and fronts on 15th Street South. An R-1B District designation would allow for four to possibly eight housing units depending upon the subdivision design. It would also be compatible with adjacent land use patterns. An existing drainageway would need to be retained along the east side. A drainage easement over this area would be established prior to the sale of the property. Recommendation: The Planning Commission voted 5 yes and 0 no to recommend approval of the rezoning. Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation - Approve City Council Packet October 14, 2008 115 Ordinance No. 40-08 An Ordinance to Change the Zoning within the City of Brookings: BE IT ORDAINED BY THE CITY OF BROOKINGS, SOUTH DAKOTA: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Lot 3, Nelson Eighth Addition be and the same is hereby rezoned and reclassified from a/an Agricultural A District to a Residence R-1B District. In accordance with Section 94-7 of Article I of Ordinance 25-02 of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to said Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. FIRST READING September 23, 2008 SECOND READING AND ADOPTION: October 14, 2008 PUBLISHED October 17, 2008 CITY OF BROOKINGS ________________________ ATTEST: Scott D. Munsterman, Mayor _________________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 116 Planning Commission Brookings, South Dakota September 2, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on September 2, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were, Al Gregg, Al Heuton, Curt Ness, Larry Fjeldos, and Fargen. Stacey Howlett, Mike Cameron, David Kurtz, and John Gustafson, were absent. Also present were Wade Price, Colleen Vukovich, City Engineer Jackie Lanning, City Manager Jeff Weldon, Toby Morris, Wayne Wagner, Beverly Dobbs, City Planner Dan Hanson, and others. Item #6 – The City of Brookings has submitted a petition to rezone Lot 3, Nelson Eighth Addition from an Agricultural A District to a Residence R-1B District. (Heuton/Fjeldos) Motion to approve the rezoning. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #6 – Hanson stated that the 3.3 acre parcel was considered surplus land. The city would prefer to rezone it prior to any sale. A drainage easement would be retained along the east side. City Council Packet October 14, 2008 120 Sec. 94-125 RESIDENCE R-1B SINGLE-FAMILY (a) Intent. This district is intended to provide for areas of residential use with a gross density of approximately five dwelling units per acre or less. The district permits single-family dwellings and supportive community facilities such as parks, playgrounds, schools, libraries and churches. (b) Scope of Regulations. The regulations set forth in this section or set forth elsewhere in this title, when referred to in this section, are the district regulations of the Residence R-1B Single-Family District. (c ) Permitted Uses. Single-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. (d) Permitted Special Uses. A building or premises may be used for the following purposes in conformance with conditions prescribed herein: 1. All permitted special uses and conditions as stated in Section 94-124(d)(R-1A). 2. Private school of general instruction. a. One of the frontages of the premises shall abut upon an arterial or collector street. 3. Family day care. a. Restricted to 12 or less children at any one time. (e) Conditional Uses. 1. Vocational or trade school 2. Retirement or nursing home 3. Two family dwelling 4. Group home 5. Major home occupation 6. Public recreation facility 7. Non-municipal library, museum, art gallery, 8. Private lake 9. Bed and breakfast establishment (f) Density, Area, Yard and Height Regulations. The R-1B district regulations shall be as follows: Per Min Min Min Min Min Max Unit Lot Lot Front Side Rear Hgt Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. Single-Family 10,000 10,000 75' 30' 8' 25' 35' Two-Family 6,200 12,400 90' 30' 8' 25' 35' Other Allowable Uses 10,000 75' 30' 10' 25' 35' Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes or other similar group quarters where no cooking facilities are provided in individual rooms (g) Accessory Uses. Accessory uses and building permitted in the R-1B District are buildings and uses customarily incidental to any of the permitted uses in the district. City Council Packet October 14, 2008 121 (h) Parking Regulations. Parking, loading and stacking within the R-1B District shall be in conformance with the regulations set forth in division 4 of article VI of this chapter (i) Sign Regulations. Signs within the R-1B District shall be in conformance with the regulations set forth in division 5 of article VI of this chapter (j) Other Regulations. Development within the R-1B District shall be in conformance with the regulations set forth in article II of this chapter City Council Packet October 14, 2008 122 Alcohol Licenses: 14. Public hearing and action Resolution No. 91-08, approving an On-Off Sale Wine License for the Brookings Hy-Vee store and authorizing the City Manager to enter into an operating agreement. The Brookings Hy-Vee Food Store has applied for a On-Off Sale Wine License for the store located at 700 22nd Avenue. An operating agreement is required for wine licenses. Resolution 91-08 would allow the City Manager to enter into the first five years of the 10-year agreement effective through 2013. This license would be subject to annual state renewal in December. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Listed below is specific information related to a wine license request and other procedures that are following with an application. Note that restaurant requirements for wine have been eliminated in state law. City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: (a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. (b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. (c) The extend to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. (d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. (e) Other factors: City Council Packet October 14, 2008 123 The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses Law Background. This issue is a result of another significant change in the alcohol laws from this Legislative Session was House Bill 1126. Effective July 1, 2008, all former on-sale wine licenses automatically become an on-off sale wine license. All types of wine can be sold with this license. The State also eliminated the “restaurant” restrictions on the type of business eligible to receive this license. The hours also change from Noon to Midnight to 7:00 a.m. to 2:00 a.m.. The clerks and wait staff will still have to be 21 years of age to sell. City Attorney Summary: New State Law An Act to revise certain provisions regarding the issuance of on-sale wine licenses and the sale of wine. Section 1. That § 35-4-2 be amended to read as follows: 35-4-2. Classes of licenses, with the fee of each class, follow: (12) On-sale dealers in wine for Sunday Wine retailers, being both package dealers and on- sale dealers—five hundred dollars; Section 3. That § 35-4-2.8 be amended to read as follows: 35-4-2.8. An on-sale licensee, licensed under subdivision 35-4-2(4) or (6), may also be licensed under subdivision 35-4-2(12) or (16), or both. A licensee holding two or more licenses pursuant to this section may exercise the privileges granted under the license issued pursuant to subdivision 35-4-2(12) or subdivision 35-4-2(16) during the time specified in § 35-4-81.2. Section 4. That § 35-4-81.2 be amended to read as follows: 35-4-81.2. No licensee licensed under subdivisions 35-4-2(16) and (17) may sell, serve, or allow to be consumed on the premises covered by the license, any malt beverage between the hours of two a.m. and seven a.m. No licensee licensed under subdivision 35-4-2(12) may sell, serve, or allow to be consumed on the premises covered by the license, any wine between the hours of two a.m. and seven a.m. A violation of this section is a Class 2 misdemeanor. Section 5. That § 35-4-11.4 be amended to read as follows: 35-4-11.4. Any municipality or county may issue a special malt beverage retailers license and a special retail on-sale wine retailers license to any civic, charitable, educational, or fraternal organization in conjunction with a special event within the municipality or within the county. Educational does not include any elementary, secondary, or higher educational institution in the public school system of this state. Any license issued pursuant to this section may be issued for a period of time established by the municipal governing body or board of county commissioners. However, such period of City Council Packet October 14, 2008 124 time may not exceed fifteen consecutive days. If an organization receiving a license pursuant to this section conducts a street dance in conjunction with the special event, the organization shall provide qualified security personnel as deemed necessary by the governing body which issued the license to maintain order during the street dance. Section 6. That § 35-4-104 be amended to read as follows: 35-4-104. Any municipality or county may issue a special malt beverage retailers license and a special retail on-sale wine retailers license to a community playhouse operating as a nonprofit organization for use in conjunction with a theatrical production. Any license issued pursuant to this section may be issued for a period of time established by the municipal governing board or board of county commissioners up to a period of one year. However, such use may not exceed sixty days per the selling, serving, or dispensing of malt beverages and wine may not occur more than one hour before the commencement of a performance or at any time after the performance is concluded. Action: Open & Close Public Hearing, Motion to approve, Roll Call City Council Packet October 14, 2008 125 Resolution No. 91-08 Wine Operating Agreement BE IT RESOLVED by the city of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for a Wine Operating Management Agreement between the City of Brookings and the Brookings Hy-Vee Food Store, 700 22nd Avenue, Doug Dell, Manager, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at the HyVee. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of ten years with a renewal in five (5) years. Passed and approved this 14th day of October 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet October 14, 2008 126 Other Business: 15. Action on Resolution No. 92-08, a Resolution authorizing Change Order (CCO #6) for 2008-03STI Downtown Streetscape Project. The 2008-03STI Downtown Streetscape Project entails construction work on Main Avenue from 6th Street to Front Street, which includes new water and sanitary sewer mains and services, new sidewalk, light poles, trees, curb & gutter, pavement and other streetscape amenities. The project has progressed to just north of the 3rd Street intersection. The contractor and city staff are extremely concerned about the advisability of opening up the last segment of the project and getting it complete before winter weather sets in. The final segment is the intersection of Main and 3rd proceeding south to approximately GP Auto and the Park/Rec building. The contractor estimates that the work on this section will take approximately 4 weeks to complete, which will depend on the weather. The main concern is if there is time in this construction season to pave this section with asphalt after the curb and utilities are complete. The weather is an important, but unknown factor in how long the asphalt plant will stay open. We would be running the risk that this section could be left as gravel all winter and spring, which would be a disastrous situation. Due to the paving concerns, I recommend that we suspend the project and not open this final segment at all so the contractors can concentrate on finishing what is currently opened up. The contractor would resume work on or about May 1 for the final segment which would take 4-6 weeks. The exact start date would be determined by the City and CDI in the spring based on the weather. During the spring work, liquidated damages will be in effect in the contract-stated amount of $1400 per day. For the work that is currently open, the contractors are required to finish the work by the contract deadline of October 31. For any part of the current work not completed by October 31, liquidated damages will also be in effect. The contract price will remain unchanged. This resolution will approve the change in contract time. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve City Council Packet October 14, 2008 127 Resolution No. 92-08 A Resolution Authorizing Change Order #6 (CCO#6) For 2008-03STI Downtown Streetscape Project Winter Brothers Underground, Inc., Sioux Falls, South Dakota BE IT RESOLVED by the City Council that the following change order be allowed for 2008-03SSI, Downtown Streetscape Project: Construction Change Order Number 6: By mutual agreement of the Contractor and the Owner, construction for the 2008 season will not proceed beyond station 12+90. The owner agrees to suspend contract time starting at the completion of the work currently underway. Contract time will start again on May 1, 2009 (tentatively). Both parties agree that liquidated damages will be suspended once contract time is suspended however liquidated damages will be assessed for all days beyond October 30, 2008 for the 2008 construction season. Liquidated damages will begin again once contract time is started in 2009. The Owner agrees that Liquidated Damages will not be assessed for days after October 30, 2008 where extreme weather conditions prevent the Contractor from working. Determination for these weather days will be at the sole discretion of the City Engineer. Passed and approved this 14th day of October 2008. CITY OF BROOKINGS _________________________ Scott D. Munsterman, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City Council Packet October 14, 2008 128 Other Business: 16. Action to approve the DEVELOPMENT AGREEMENT for Tax Increment Plan for Tax Increment District Number Four (TID #4). TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Development Agreement for Sieler Addition; TID #4 Attached is the development agreement for Tax Increment District Number 4; the Sieler Addition. This is the final document necessary to activate the TID. You previously approved the tax increment project plan and awarded construction contracts for the subdivision. The document is self-explanatory except I want to draw your attention to Section 13 which addresses the size of the homes to be constructed. Previous discussions relative to housing tax increment districts by the City Council and Planning Commission have sought to generally prescribe a final product that essentially met certain criteria. With TID #3, we prescribed the homes to be a minimum square footage of 1200 square feet, double garage, a variety of floor plans, etc. The developers of Sieler Addition have a floor plan that is 861 finished square feet. This size does not count the unfinished lower level or the entry foyer. I visited with the developers and encouraged a larger home as I was concerned about the marketability of such a small home. After visiting with them, I am somewhat persuaded, but not totally convinced, in their arguments to make the smaller home eligible for this subdivision. Since this is a pay-as-you-go TIF, the developer bears the risk of paying all the taxes and securing the increment from homes that may not sell because they are too small, or for any other reason. In that regard, the City should not try to micromanage the development and let the developer respond to the market as they see fit. However, smaller homes yield less property taxes which translates into less increment being available. As a result, the developer will need to sell more homes or it will take a longer period of time, to capture the necessary increment to pay for eligible project costs. Alternatively, the benefit of the use of TIF needs to provide a final product that can be assured as being a positive asset to the neighborhood, community, and the overall goals that justify the use of TIF. It can be argued whether or not a home that is 861 finished square feet enhances or detracts from these policy considerations. I decided to include the developer’s requested language in the agreement, but raise the issue with you for consideration, and let the developers make their case directly to you. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve City Council Packet October 14, 2008 129 DEVELOPER ’S AGREEMENT THIS AGREEMENT, made on ____________, 2008, by and between the City of Brookings, a municipal corporation of the state of South Dakota and the county of Brookings called the City, and Oakwood Equity, Inc., a South Dakota corporation, with its principal office located at ________, Brookings, South Dakota 57006, called the Developer, witness: Whereas, the City of Brookings created Tax Increment District Number Four, the legal and map of the area indicated below; and; Whereas, Tax Increment Bond Proceeds will be used to assist in providing for certain project costs; and Whereas, the City wishes to place certain terms on the development in exchange for tax increment funds used for infrastructure abutting affordable housing lots. NOW, THEREFORE, in consideration of the mutual covenants contained in this agreement, the parties, for themselves, their successors and assigns, hereby agree as follows: 1. Agreement Relating to Installation of Roads, Curbing, Pavements, Street Lights, Fire Hydrants, Water and Waste Water. The Developer shall construct, except as hereafter provided in paragraph 2, as provided for in the subdivision, all roads, curbing, pavement and other improvements, including all catch basins and drainage facilities, monuments, street lights, and other improvements of any nature whatsoever as set forth on the final plat dated ____________, 20___, approved by the City engineer, and accompanying construction plans prepared by the City engineer, and in accordance with all present state and local laws, present improvement ordinances and regulations of the City of Brookings, South Dakota and in all respects complete the subdivision in accordance with all maps, plans and specifications on file with the planning board and local laws, ordinances and regulations. Where any such construction has been partially completed prior to this agreement, Developer agrees to complete them in accordance with this paragraph. 2. Tax Increment District Number Four Project Costs. The City shall undertake and construct such public improvements as are set forth in Tax Increment District Number Four project plan in an amount not to exceed $475,000. The City of Brookings will only reimburse the actual costs per the itemized construction contracts and will not exceed an aggregate amount of $475,000. Drafted By Todd Meierhenry Danforth & Meierhenry, LLP 315 S. Phillips Ave. Sioux Falls, SD 57104 (605) 336-3075 City Council Packet October 14, 2008 130 3. Conditions to run with the land. As a condition of provided the tax increment bond proceeds, the Developer agrees to provide and construct affordable housing not less than 33 family housing units with a maximum sales price retail sales value of $160,000 be constructed in the subdivision to be affordable housing units. This agreement shall be filed on the real property as evidence of said condition. 4. Acceptance of Improvements. The City shall not be responsible for road or other improvements, maintenance or care until the same shall be accepted, nor shall the City exercise any control over the improvements until accepted. Upon the proper completion of these improvements and their approval by the City engineer, and if these improvements then comply with all present state laws, present City ordinances and planning board rules, regulations and requirements, the City will then accept the improvements. 5. Public Right-of-Ways. The City represents that it has good title to the roads and public ways in which the improvements will be installed, and agrees that the roadways and easements as set out on its maps heretofore filed with the planning board are thereby dedicated, and that all improvements and roads as required by the City and agreed to by the Developer , including waste water, water mains, hydrants and other appurtenances shall, upon completion and acceptance by the City , be the property of the City . 6. General Requirements. It is agreed that the work to be performed hereunder shall be completed within 18 months from the date of this agreement, unless the time is extended by the City, which extension shall not be unreasonably withheld. 7. Run with the Land. This agreement shall run with the land, as shall also the covenants herein contained, and shall be to the benefit of the City and its successor and assigns. 8. Guaranty of Bonds. If required by bond purchase, the Developer agrees to guaranty the Tax Increment Bonds, Series 2008 of the City. It is understood that if there is not sufficient Tax Increment Revenue for the debt service, the City will not be responsible for any shortfall. 9. Pay Agent. The City will act as the paying agent for the bonds. 10. Draw Down. The bond shall be drawn upon once the following has been completed: 10.1. Developer shall have demonstrated in writing to the reasonable satisfaction of the City that said improvements have been made. 10.2. Developer shall have submitted invoices showing services / improvements have been made. 10.3. Developer shall insure that their financial institution shall submit necessary funds to the City of Brookings for related payments. City Council Packet October 14, 2008 131 11. Maintenance until Acceptance. The Developer shall maintain, clean and snowplow such roads until acceptance by the City. In the event of default of these obligations by the Developer, the City without notice to the Developer, may do the same at the expense of the Developer . 12. Maximum price of developed parcel. The Developer shall set the price of a completed home and lot in an amount not to exceed $160,000 in 2008 and such prices shall not exceed the affordability index as established by South Dakota Housing Development Authority. There shall be no special assessments levied against any parcel for the provision of infrastructure with the initial sale. 13. Homes to be constructed. The Developer shall construct homes within the prescribed price range in accordance with market conditions but shall be a variation of four different floor plans ranging from 861 to 1400 finished square feet in size, shall be between two and three bedrooms with one or two bathrooms and shall include double attached garages. 14. Owner Occupied. The Developer agrees to put in the purchase agreement that the first time home buyer shall not rent the house out within one year of signing the purchase agreement 15. Mechanics Liens. The Developer, Oakwood Equity, agrees to immediately satisfy any and all mechanic’s liens or material man’s liens that arise as a result of this project. This provision shall not prevent Oakwood Equity from subsequently seeking compensation from subcontractor or others who may be responsible for such liens or for such payment. 16. Discretionary Tax Formula. The Developer agrees to waive any and all rights to the discretionary tax formula with the County of Brookings. 17. Street Construction. City agrees to apply TIF proceeds based on the bid alternate submitted by the awarded bidder to the street constructed of asphalt that meets City construction standards. City will approve construction plans that substitute concrete streets provided the concrete specifications meet City construction standards. However, the resulting upcharge (difference between asphalt and concrete) is not an eligible TIF expense and the Developer will be required to pay said up-charge. 18. Agreement Among Parties. This document, along with the Project Plan for Tax Increment District Number Four, shall constitute the entire agreement of the parties. Any differences between said documents will be controlled by this document. No other promises or consideration form a part of this Agreement. All prior discussions and negotiations are merged into these documents. In the event of a conflict between the Project Plan and this agreement, this agreement shall be controlling. Any changes or addendums hereto shall be agreed to in writing by both parties. City Council Packet October 14, 2008 132 19. Litigation. Any dispute arising out of or related to this Agreement shall be litigated in the Third Judicial Circuit Court for the State of South Dakota, located in Brookings, Brookings County, South Dakota. 20. Termination of Agreement. Should the Developer not adhere to the price restrictions of the homes, or violate any other part of the Developer ’s Agreement, the City reserves the right to terminate payments on the TIF Bond, regardless if there is any outstanding principal of the bond. In witness whereof, etc. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk SEAL Oakwood Equity, INC. _______________________ President ATTEST: _________________________ Secretary SEAL City Council Packet October 14, 2008 133 17. Adjourn.